Continuing our engagement with the Department of Social Protection on the PRSI status of proprietary directors following enactment of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013, we have been informed by the Department that a questionnaire is to be completed in cases where the director’s shareholding is less than 50%. This questionnaire is required to be submitted in addition to the INS 1 form. We understand that some members have already received this questionnaire in relation to a request for a PRSI ruling in director cases.

We have also been informed that there were approximately 520 cases on hand with the Department pre enactment of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013. At this stage over half of these cases have been decided; the majority of which related to cases where the shareholding exceeded 50% and therefore under section 16 of the Act, are automatically subject to PRSI class S.

In the cases where the director’s shareholding is less than 50%, the questionnaire has been issued in respect of these cases. These questionnaires are required by the department in order to clear the backlog of the cases. When a ruling is sought on the PRSI status of directors, the questionnaire in addition to the Form INS 1 will be required by the scope section at the Department of Social Protection.

You can obtain a copy of the questionnaire and Form INS 1 by contacting the Scope Section in the Department of Social Protection.

We are continuing to engage with the Department on this matter and the use of the questionnaire. We will report of any developments in tax.point.

Our submission to the Department on the PRSI status of directors was reported on in the September 2013 issue of tax.point.