Dáil Éireann Debate, Wednesday - 27 September 2006
1061 Ms Enright asked the Minister for Social and Family Affairs the procedure in place where PRSI contributions have been deducted from employees but not submitted to his Department; and if he will make a statement on the matter. [30097/06]
View answerPay Related Social Insurance (PRSI) is an important part of the social welfare system. Social Insurance provides a range of benefits to customers at certain specified times in their lives. The integrity of the PRSI system is dependent on timely, appropriate contributions being made to the Social Insurance Fund by employers, employees and the self employed as laid down in social welfare legislation.
Contributions due to the Social Insurance Fund are collected by the Revenue Commissioners. My Department's Inspectorate also have responsibilities in relation to ensuring that employers and the self employed comply with their obligations in relation to Pay Related Social Insurance contributions. Employer compliance in this regard, is monitored by Inspectors whose remit includes a detailed examination of employers' records to ensure that correct PRSI payments are being made in respect of all their employees. In addition, any irregularity in a customer's PRSI record either detected at claim processing stage or reported directly by the customer, is referred to the Inspectorate for follow up action.
Where PRSI undercharges are confirmed, the Inspector sets out PRSI arrears/underpayment in respect of each employee for each tax year and issue a demand to the employer for payment. Should the employer fail to respond satisfactorily, a statutory demand issues by registered post and the employer is given 14 days to respond. If the employer fails to respond the case may be referred for prosecution.
If the employer is not able to produce wage records, the employee is asked to complete a statement (Form IN12) detailing evidence of employment and payment of earnings is obtained.If the employment is confirmed either by way of wage inspection or employee statement, my Department's Central Records Unit is advised to update the employee's PRSI record for the period of employment in question. In cases where a customer makes a claim for a social insurance payment, entitlement to the payment is established using the information gathered during the investigation.
