Continuing our engagement with the Department of Social Protection on the PRSI status of directors and section 16 of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013, we have made a written submission to the Department on the PRSI treatment of directors.

Highlights of the Submission Are:

• The Code of Practice for Determining Employment or Self-Employment Status of Individuals is insufficient to deal with all the features of directorships. New guidance designed specifically to deal with determinations of PRSI Class S for directors is recommended.
• Key factors which point towards PRSI Class S status for directors include:
  • Exposure to financial risk
  • Opportunity to profit from sound management
  • Company acting as a quasi-partnership
  • Possibility of being dismissed
  • Business viability
• Some of the factors relied upon within the current Code such as; who supplies materials and equipment, and if expenses are reimbursed, are not relevant to determining PRSI Class S for directors and should not be examined.
• The current Form INS1 is not suitable when applying for a PRSI determination for a director.
• Delays in PRSI determinations issuing and unsatisfactory responses are causing considerable concern and we press the urgency for this to be remedied as soon as possible.

A copy of the submission is published on the Chartered Accountants Ireland website - www.charteredaccountants.ie