Tuesday, 23 July 2019

Questions (2661)

John Brady


2661. Deputy John Brady asked the Minister for Employment Affairs and Social Protection if the affected small businesses in County Donegal will be financially compensated for the significant cost of complying with the requirement that they conduct a mini-audit of their business to demonstrate they are not employing staff illegally; and if she will make a statement on the matter. [31543/19]

View answer

Written answers (Question to Employment)

My understanding is that the Deputy is referring to Pay Related Social Insurance (PRSI) inspections that are currently taking place nationwide, including County Donegal.

Social welfare legislation provides the basis for entitlement to a range of income supports for unemployed people, people with disabilities, carers and older people, as well as supports for families and for people in employment; liability for PRSI contributions and for a range of related matters

Most employers and employees (over 16 years of age and under 66) pay PRSI contributions into the national Social Insurance Fund. In general, the payment of social insurance is compulsory. The Social Insurance Fund is then used to fund social insurance payments.

Every year, inspectors from the Department of Employment Affairs and Social Protection visit many employers. The purpose of these inspections is to ensure, amongst other things, that employers are:

- Paying employer PRSI contributions

- Paying PRSI contributions for their employees

- Keeping proper records for contributions paid

- Keeping records of payments made to contractors, payments to Revenue

- Sales and Purchases Invoices etc

The Department's inspectors have the power to inspect records and there are penalties for people who obstruct or refuse to supply information, or fail to keep or produce records and documents, and that are not compliant with legislation.

Employers are obliged to be PRSI compliant and therefore there are no financial compensations available to employers to ensure that they are compliant.

I trust this clarifies the matter for the Deputy.