Social insurance contributions amounting to nearly £2.5 billion were made by employers, employees and the self-employed in 1999. The Revenue Commissioners, acting as agents for my Department, collect the vast majority of these contributions through the combined PAYE/PRSI system. In addition, a relatively small amount of social insurance contributions is remitted directly to my Department by certain employers and self-employed.
Social welfare legislation provides for the deduction and remittance of contributions. The legislation also obliges employers to maintain, for social insurance purposes, detailed records of all persons employed during the course of each tax year, to furnish returns relating to these employees and to issue, either annually or on cessation of any employment, certain statements to employees regarding social insurance contributions. Accordingly, employers make, if applicable, a PRSI deduction from their employee's wages. These contributions, along with the associated employer PRSI contribution, are normally remitted each month to the Revenue Commissioners. Within 45 days of the end of each tax year, the employer is obliged to make a return, P35, to the Revenue Commissioners which details the earnings, employee PRSI contributions, total PRSI contributions, class of PRSI applicable and number of weeks of insurable employment of each person employed during the course of that year.
Returns in relation to nearly two million employees are made each year. An employer is also obliged to issue to each employee, either on cessation of an employment or within 45 days of the end of each tax year, a statement, either P45 or P60, relating to the individual employee's PRSI and income tax history during the course of that year. Social welfare legislation also provides that an employee may, once every three months, inspect or obtain a statement of the statutory social insurance records which an employer is obliged to maintain in relation to that employee.