asked the Minister for Social Welfare if he is aware that private contractors who have obtained by tender, local authority schemes i.e. housing, water and sewerage, must deduct social welfare and health contributions from their employees; if this fact should be a condition of the tender; and if he will make a statement on the matter.
Written Answers. - PRSI System.
291.
Generally speaking all employees over the age of 16 years whose earnings from employment are assessable to PAYE income tax must pay a contribution under the PRSI system. A private contractor therefore, like all employees, irrespective of whether he is performing a service for the public or private sector must remit PRSI contributions (inclusive of health contributions) to the Collector-General in respect of each payment of reckonable earnings made to an employee. In order to discharge this liability there is a legal obligation on each employer to register with the Revenue Commissioners. Likewise an employee must also register with his local tax office and obtain a PRSI number from them.
The statutory obligations of employers in relation to the payment of PRSI contributions are provided for in the Social Welfare Acts. These obligations are well known to employers and employees and it is not clear what further advantage there would be in having the matter referred to in a contract. The Deputy's suggestion will, however, be referred to the appropriate authority for consideration.