Foilsiú
Operational Guidelines: Scope Section - Insurability for PRSI purposes
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The function of Scope Section is to make decisions and provide information and advice on PRSI insurability. This means it decides which class of PRSI contributions, if any, should be paid on a particular employment or income, in accordance with the Social Welfare Consolidation Act 2005.
Scope Section will provide information and advice in relation to queries it receives. Where required, a formal decision will be provided by a Deciding Officer in Scope Section.
Deciding Officers are appointed by the Minister and make decisions on questions concerning the insurability of an employment as follows:
A Deciding Officer will give a decision on these matters regarding an employment/self-employment that is current/ongoing or employment/self-employment that has ceased. However, they cannot provide a decision on the insurability of a worker under a proposed contract or before an employment commences.
The types of case that Scope Section deal with include the PRSI insurability of:
Scope Section decides which is the appropriate class of PRSI payable. It doesn’t provide details of an individual’s contribution record or answer general queries regarding PRSI rates, payments or entitlements. Contact details for such services are contained in the various links within this page and in the ‘Other useful contact details section’ below.
Employers and employees or former employees, or their representatives, may apply to have an employment investigated to make sure that the correct class of PRSI is applied. Social Welfare Inspectors may also refer cases to Scope Section while carrying out their inspection work. Insurability questions may also arise during claims processing across the department’s scheme areas.
Further information about the various PRSI classes is available here: https://www.gov.ie/en/publication/14ecbe-the-different-classes-of-pay-related-social-insurance-prsi/
Anyone seeking information, advice or a decision regarding their insurability or the insurability of their workers for PRSI can apply to Scope Section (no application form involved) at:
Deciding Officers can make advisory decisions where they deem that a formal decision is not required. Advisory decisions are normally given when confirmation of an existing class of PRSI is requested or when a change of PRSI class is not required or where a change of class is required but the parties are in agreement about the change.
Where a formal decision is required, the Deciding Officer may decide cases by:
The Deciding Officer will determine whether they have sufficient information to make their decision or whether it is appropriate to refer the matter to a Social Welfare Inspector, which normally happens in more complex cases. Records of directorships and shareholdings registered for limited companies in the Companies Registration Office are also available to the Deciding Officer to aid the processing of insurability cases.
Where it is decided that an Inspector should interview the parties, the Deciding Officer dealing with the case will, normally, indicate to the Inspector what information is required for him/her to make his/her decision. The Inspector decides how best to investigate the case. The employer/business might be interviewed at the place of business or at another agreed location and the worker might be interviewed at his/her place of employment, in his/her home or at another agreed location. Interviews may be carried out by phone or online at the discretion of the Inspector. The Inspector will request any documents and information required to enable the Deciding Officer to determine the PRSI insurability; this can include business records, invoices, contracts and so on.
Cases involving a question of employment status – that is, whether a worker is an employee or self-employed – are normally referred to Inspectors in the Employment Status Investigation Unit (Social Welfare Inspectors).
Each Scope case is assessed on its own merits and a separate decision is made in relation to each individual case. Employment relationships which may, on the face of it, seem to be the same can differ in the actual terms and conditions that pertain. Scope Section considers all the available evidence, including the report of the Social Welfare Inspector where applicable, and establishes the facts of each case.
Decisions are then made on the basis of the statutory provisions in Social Welfare legislation (set out below) as well as the legal principles set down in relevant caselaw. Decisions about employment status – that is, whether an individual is an employee or self-employed for PRSI purposes – also involve reference to the revised Code of Practice on Determining Employment Status The revised Code was published in July 2021 by the Minister for Social Protection and it is the key guidance document for employers, workers and others in relation to deciding the employment status of a worker.
Each of the parties involved in the case being investigated, and, where appropriate, their representatives, is notified of and receives the Scope decision when it is finalised. The reasons for the decision are included in the decision letter.
Where a Scope decision results in a change to a worker’s PRSI class and, consequently, their contribution record, their record is amended accordingly by the department. Entitlement to a social insurance benefit will then be decided in accordance with the amended contribution record.
However, where the contributions previously paid were deducted at the incorrect rate with the consent or connivance of the worker, the contribution record will not be amended until the contributions properly due are paid.
Any underpayments of PRSI are pursued through the department’s Inspectorate, who will follow up to ensure outstanding PRSI arrears are paid.
Alternatively, the employer and/or the worker may be entitled to a refund of PRSI arising from the Scope decision. See further information and contact details in relation to claiming a PRSI refund.
A Scope decision deals only with PRSI insurability and it has no effect on an individual’s status for tax or employment rights purposes. The Office of the Revenue Commissioners deal with tax treatment and the Workplace Relations Commission deal with employment rights issues.
Deciding Officers may revise any decision (their own or that of another Deciding Officer) where it appears that the decision was incorrect because of new evidence or new facts which have been brought to their attention. They may also revise a decision if it appears that some mistake was made in relation to the law or the facts.
If someone wishes a decision to be revised, they can contact Scope Section. A request to revise a decision should clearly articulate any new facts that were not before the Deciding Officer when they made their decision, or any mistake believed to have been made in relation to the law or the facts.
All decisions can be appealed by either party if they are dissatisfied with the Deciding Officer’s decision. Appeals must be made within 21 days of the date of the decision. Appeals are made to the Social Welfare Appeals Office.
While Scope Section in the Department of Social Protection has responsibility for deciding the appropriate class of PRSI, the Revenue Commissioners have responsibility for the general collection of PRSI contributions along with the collection of tax revenue. Scope Section liaises with the Office of the Revenue Commissioners to ensure consistency in decision making in both organisations, insofar as this is possible, in relation to the classification of employments.
The legislation dealing with PRSI insurability is mainly contained in the Social Welfare (Consolidation) Act 2005. The following sections are particularly relevant:
The Social Welfare (Consolidated Contributions and Insurability) Regulations, S.I. No. 312 of 1996 also contain key provisions on which Scope Section relies.
Contact Revenue at www.revenue.ie/en/contact-us/index.aspx to find your local Revenue office.