Tax and PRSI Question

Freckleina

Hi,

I'm not sure if this is the correct group to be raising a question relating to TAX and PRSI, but if you can provide an opinion, that would be great.

What are the consequences if you discover that your employer was not paying your PRSI? Obviously, there are the personal effects on social welfare benefits etc, but will the employee or employer face trouble as a result?

dresden8

It's the employer's responsibility to deduct and pay PRSI so the trouble lands on him.

Should be in Work and Jobs forum probably though.

Time Magazine

dresden8 wrote: »

Should be in Work and Jobs forum probably though.

I think so too. Fired over from Economics.

Mr Clonfadda

Your employer will be fully responsible. what he pays you is taken as the net pay after all statutory deductions have been taken. It's then his responsibility to return those to revenue. Not sure if any liability could rest with an employee who knowingly participated though.

CDfm

Hi it depends what you mean as discovered - in certain cases employers are exempt from PRSI say when taking on additional workers under a job scheme etc.

But lets assume this is just about you and everything is normal. In most cases people do things normally but some employers are disorganised and pay and reconcile at the end of the year. Normally -with an end of year P35. If they have previously over paid to the Collector General for tax or prsi overall this will generally be reconciled by then.

For this reason - eligibility for benefits is normally based on the previous years contributions.

If payments have not been made and a business goes bang wallop- the Revenue get paid out first. So theres no liability to you.

Sometimes - the Collector Generals office dont pay out to the PRSI office for a few years - backlogs - but you can check up your individual PRSI records withe the Welfare office - and if memory serves me thats in Amien Street in Dublin. THats confidential and if after you enquiring if they feel the need to make an inspection they will.

If you are really concerned go to your local citizens advice center and they will help you with contact numbers etc.

A word of caution employers take revenue and social welfare visits seriously so unless its a big thing - rather than a niggling little problem - I would be cautious- if I was checking -I wouldnt tell anyone at work at all-ever

Freckleina

Thanks for your comments. This question doesn't relate to me, thank God! I'm asking on behalf of a friend, and its actually a family business that he works for. It seems his parent has been very slack in paying his PRSI the last couple of years, although he's paid his own tax returns. Just concerned for my friend because, considering the climate at the moment, if he finds himself ever seeking Unemployment benefit, he won't be eligible. Before he starts asking questions in the CAB, wanted to ensure that no-one could end up in trouble because of what appears to be his parent's laziness!

Karmaa

If they were not paying his Prsi contributions then I find it difficult to understand that they where paying the correct amount of his tax contributions either. There is a P30 form that has to be submitted to Revenue each month by employers. This is where the payments of Prsi and Tax are submitted....
His parents should really get this sorted asap as it can result in some serious consequences laid on by Revenue...I'm sure whoever does their accounts will sort this for them.