Michael Healy-Rae
Question:131. Deputy Michael Healy-Rae asked the Minister for Social Protection her views on correspondence (details supplied) regarding employment; and if she will make a statement on the matter. [29836/13]
View answerDáil Éireann Debate, Thursday - 20 June 2013
131. Deputy Michael Healy-Rae asked the Minister for Social Protection her views on correspondence (details supplied) regarding employment; and if she will make a statement on the matter. [29836/13]
View answerThe determination of the employment status and therefore the PRSI Class applicable to working directors has been the subject of challenges, court judgments and legal advices. As a result, the Department carried out an examination of the matters that determine the insurability status of working directors, having regard to these judgments and advices.
As the Deputy will be aware I am currently taking the Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013 through the Houses of the Oireachtas. Section 16 of the Bill provides that a working director with a shareholding of 50% or more in a company will not be regarded as being insurable as an employed contributor in the company. Company directors holding 50% or more of the shareholding of a company are not normally regarded as falling within a normal employer/employee relationship and are therefore, deemed not to be employed under a contract of service and liable for PRSI Class A contributions (as an employee). Instead, such company directors are deemed to be employed under a contract for services and to be liable for PRSI Class S contributions (as a self-employed person). The Bill has been passed by Dáil Éireann and is scheduled to be debated in Seanad Éireann next week.