Tuesday, 25 June 2013

Questions (363)

Michael Creed


363. Deputy Michael Creed asked the Minister for Social Protection if a facility of tracking the switch over of direct employees in the construction sector to C2 operators, if she is satisfied that all C2 operators are compliant with the regulations and that the increased number is not a reflection on the reluctance of employers to pay the appropriate PRSI contributions for their employees; and if she will make a statement on the matter. [30220/13]

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Written answers (Question to Social)

The class of PRSI payable by an individual is determined by the terms and conditions of the employment in which they are engaged. Generally an individual is classified for PRSI purposes as either an employee or self-employed. When determining whether an individual is employed or self-employed, consideration is given to the Code of Practice for Determining the Employment or Self-employment Status of Individuals.

The correct treatment of individuals for tax and PRSI purposes, particularly in the construction industry, is an issue which is closely monitored by officials from both the Office of the Revenue Commissioners and my Department.

In conjunction with Revenue, my Department undertakes site visits and inspections in the construction sector through assurance checks and outdoor operations, including inspections and direct investigations. In this regard Joint Investigation Units (JIUs) have been established between my Department and Revenue. These units play a key role in targeting particular types of activity and workers in the employed sectors, including construction. Work carried out by the JIUs includes monitoring and compliance activity associated with sectors where tax compliance and social welfare fraud and abuse are common, but also to ensure that persons are appropriately classified in respect of PRSI.