The Department's Inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005, is responsible, inter alia, for ensuring that employers and self-employed people comply with the Act in relation to Pay Related Social Insurance (PRSI) contributions. Employer compliance, in this regard, is monitored through employer enquiries and inspections which include detailed examinations of employers' records to ensure that correct PRSI payments are being made in respect of all employees.
Where PRSI undercharges are confirmed, the Inspector sets out the PRSI arrears or underpayment in respect of each employee for each tax year and issues a demand to the employer for payment. Should the employer fail to respond satisfactorily, a statutory demand will issue by registered post and the employer given 14 days to respond. If the employer fails to respond, the case is considered for prosecution.
Employer enquiries on PRSI compliance can be referred either by a customer or by a Department official where irregularities on a customer's record are identified. Where an employee notifies the Department that his or her employer has not been remitting PRSI on their behalf, or where an irregularity in a customer's PRSI record is detected at claim processing stage, the case is referred to a Social Welfare Inspector to enquire into the matter.
The Department is committed to ensuring that employers comply with their statutory obligations, thereby ensuring that employees do not suffer a delay in securing any social welfare entitlements and contributions to the Social Insurance Fund are made in an accurate and timely manner.