Dáil Éireann Debate, Wednesday - 3 June 2020
1110. Deputy Aindrias Moynihan asked the Minister for Employment Affairs and Social Protection the measures being considered to ensure that employees participating in the wage subsidy scheme do not have their social insurance contributions adversely affected as a result of the use of the PRSI class J9 arrangement currently in place; when such measures will be in place; and if she will make a statement on the matter. [9025/20]
View answerThe Government has introduced a number of initiatives to help employers and their employees during this difficult time, including the Covid-19 Temporary Wage Subsidy Scheme. This scheme is operated by Revenue and provides the payment of support to employers in respect of eligible employees where the employer’s business has experienced significant disruption due to the Covid-19 pandemic.
As set out in the legislation underpinning the scheme, employers are required, for the purposes of their PAYE obligations to record PRSI at Class J9 for each employee in respect of whom a subsidy is being claimed. This coding will also assist in subsidy payment reconciliation. Where employers make a weekly ‘top-up’ payment to their employees, in addition to the subsidy amount, a PRSI charge at the Class J9 rate applies to the ’top-up’ payment amount and is payable by employers. No PRSI charge arises for employees in respect of whom an employer claims a subsidy under the scheme.
In the exceptional circumstances of the Covid-19 pandemic, it is the intention of the Government to ensure that employees, in respect of whom a subsidy is claimed by their employers, do not have their social insurance contribution records interrupted or otherwise adversely affected as a result of participating in the Covid-19 Temporary Wage Subsidy Scheme.
My Department is in the process of developing legislative proposals in this regard for consideration by the Government in the near future.
I trust that this clarifies the matter for the Deputy.
