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Social Insurance

Dáil Éireann Debate, Tuesday - 14 December 2021

Tuesday, 14 December 2021

Ceisteanna (456)

Alan Kelly

Ceist:

456. Deputy Alan Kelly asked the Minister for Social Protection if she will provide a detailed reply to a PRSI query (details supplied). [61961/21]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Social)

Remittance of social insurance contributions by self-employed people fall into either of two broad categories. The first category are those who exercise a trade or profession and who are obliged to file annual returns of income under the Revenue self-assessment process through which any social insurance liabilities arising are collected in a single, annual sum. The second category are company directors who utilise the PAYE system to remit the social insurance contributions due from their emoluments. It has been confirmed with the Deputy’s office that clarification relating to this latter category is what is required.

As company directors are paid through the PAYE system they are required to discharge the appropriate social insurance liability, along with the relevant tax and USC liabilities as prescribed by Revenue. The employee social insurance contribution rate of 4% must be deducted and Class S returned.

Recognising that company directors may not draw emoluments in every week of the contribution year, my Department reviews the number of Class S contributions and the charges remitted on PAYE, if less than 52 weekly contributions have been returned on payroll. This is done to ensure that in all circumstances where emoluments reach the €5,000 social insurance contribution liability threshold, even when returned over a portion of the year, and the liability is discharged in full, the company director will be assigned 52 Class S contributions. This ensures consistency with the contributions assigned to those who file annual returns under the self-assessment process.

I trust this clarifies the matter for the Deputy.

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