Vol. 523 No. 4
110 Mr. Ring asked the Minister for Finance the steps being taken to ensure that all employees are properly insured for PRSI by their employers; and the steps being taken to ensure that employees are issued with a P45 on leaving employment. [21457/00]
I am informed by the Revenue Commissioners that this is one of the matters examined under their audit programmes. In addition, the Department of Social Community and Family Affairs operates extensive checks to ensure the correct treatment of employees. Both agencies also co-operate at local level through the joint inspection units. In practice the main issue that arises is whether an individual is employed or self-employed. In the absence of a legal definition of employment or self-employment this is a matter of fact and is generally quite clear cut in the vast majority of cases. However, there are cases where the decision is not quite so clear. Borderline or disputed cases are considered on their own merits in the light of case law. Any Revenue decision in this area is subject to the normal right of appeal.
If an individual is an employee there is an obligation on the employer to pay the appropriate social insurance contributions, which may be recovered from the employee.
To assist employers and individuals to determine their status, Revenue and the Department of Social, Community and Family Affairs have issued a leaflet entitled "Employed or Self-Employed, A Guide for Tax and Social Insurance". The leaflet was also carried in "Tax Briefing", a Revenue publication with a wide circulation among accountants and other tax advisers.
Revenue is not aware of employees experiencing difficulty, in general, in obtaining P45s. However, if particular circumstances are brought to Revenue's attention, the matter will be investigated.
