Outstanding PRSI contributions
Desmond asks about employers’ unpaid PRSI deductions and delays in checking contributions under the new collection system. Woods notes monthly payments lack employee details, acknowledges initial difficulties and the reported £1.5 million outstanding weekly, and says the Department will work to ensure the money is received.
asked the Minister for Social Welfare the total amount of pay-related social insurance contributions and statutory interest outstanding as of the latest available date by employers already deducted from the remuneration of their employees.
Comment on this
Under the pay-related social insurance collection system employers have since April last been obliged to transmit each month to the Revenue Commissioners a bulk payment to cover the pay-related social insurance contributions payable in respect of all of their employees. The return form accompanying the monthly payment gives no details of the make up of the payment nor does it identify the employees to whom the payment relates. At the end of the tax year, however, employers will have to furnish to the Revenue Commissioners a special return showing details of the contributions appropriate to each employee during the year. On receipt of this return from the employers it will be reconciled by the Revenue Commissioners against the monthly payment already received and it will either balance with them or otherwise show an underpayment or overpayment position. I am informed by the Revenue Commissioners that pending receipt of these end-of-year returns from employers it is not possible to quantify the extent of underpayments during the year arising from employers' failure to remit their full liability every month.
Some employers fail to submit their monthly return by the due date, and I am advised by the Revenue Commissioners that in these instances vigorous pursuit action is taken to enforce the furnishing of the outstanding returns. In such cases the amount of arrears of pay-related social insurance contributions, if any, will not be known until the monthly return is furnished in due course.
The total of statutory interest outstanding as at 31 January 1980 which relates to monthly payments of contributions by employers which were received after the due date is approximately £1.3 million.
Comment on this
Is the Minister entirely satisfied that there is sufficient liaison between his Department and the Revenue Commissioners to ensure that prompt and immediate returns of pay-related social insurance contributions are made by employers? Is he satisfied that the old arrangement whereby an employee could check up almost immediately with the Department as to whether returns had been sent in ceases, and now one is dependent on a computer read-out at Revenue Commissioner level? Finally, are the Revenue Commissioners in agreement that the period of waiting to cross check against an employer is excessively long so that some employees may have been criminally defrauded of money which is deducted out of their income?
Comment on this
As the Deputy is aware, it is a new system and it has involved a lot of additional work for the Revenue Commissioners. I presume there will initially be difficulties along the lines suggested by the Deputy. I will certainly be concerned to see that these problems are overcome.
Comment on this
Would the Minister not agree that as of now there is £1.5 million deducted at source each week from employees outstanding and that there are some people enjoying themselves out of the pockets of their employees? These are very substantial deductions.