Thursday, 20 June 2013

Questions (131)

Michael Healy-Rae


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 answer

Written answers (Question to Social)

The 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.