asked the Minister for Social Welfare the circumstances in which a part-time company director whose main occupation is that of a sole trader independent of the company of which he is a director may be called upon to pay social welfare contributions out of the remuneration received by him as such director; if he is aware of a considerable amount of public confusion in relation to the matter; and if steps will be taken to clarify the issues involved.
Written Answers. - Social Welfare Contributions.
173.
I am not aware of any public confusion in relation to the matter of the social insurance of company directors.
The position is that employment under a contract of service is insurable under the Social Welfare Acts. Company directors, as such, are not regarded as being employed under a contract of service and consequently the directorship, of itself, does not make a person insurable under the Acts. The constitution of a company may allow the company to employ a director in an office of profit as if he were a person other than a director and, under such an arrangement, his employment could be under a contract of service and thus insurable. If, however, a working director is in a controlling capacity within the company to such an extent that he makes decisions for the company, he would not be regarded as being employed under a contract of service and would not be insurable.
Under the Social Welfare Acts, any decision as to whether an employment is or is not insurable is given by a deciding officer and there is a right of appeal against any decision if a person affected is dissatisfied with it.