S.I. No. 229 of 2012.
SOCIAL WELFARE (CONSOLIDATED CONTRIBUTIONS AND INSURABILITY) (AMENDMENT) REGULATIONS 2012
(This note is not part of the Instrument and does not purport to be a legal interpretation.)
Section 13 of the Social Welfare Act 2011, together with sections 9, 10 and 11 of the Social Welfare and Pensions Act 2012 provide for the payment of employee PRSI contributions and self-employment contributions on certain types of share-based remuneration. As a consequence, a number of amendments are required to be made to the administrative arrangements relating to the payment and collection of PRSI contributions, which are contained in the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 (S.I. No. 312 of 1996).
These Regulations provide the manner for the remittance of employee PRSI contributions on certain types of share options. PRSI contributions due on any gains realised by the exercise of a right to share options in accordance with section 128 of the Taxes Consolidation Act 1997 will be liable to be paid by the employed contributor to the Collector-General, through the relevant tax on share options system. PRSI contributions due on any gains realised by the exercise of a right to share options in accordance with section 519A of the Taxes Consolidation Act 1997 (i.e. savings-related share option schemes) will be liable to be paid by the employed contributor to the Department of Social Protection, through the special collection system, where the person who realises such a gain s no longer working in the company through which those share options were provided. PRSI contributions due on any other gains realised on share options will be liable to be deducted by the employer and remitted to the Collector-General.
These Regulations also provide that PRSI contributions due to be remitted by an employed contributor to the Collector-General or to the Department of Social Protection in respect of share options will be liable to be remitted by the employed contributor within 30 days of the realisation of that gain. In addition, the late payment of PRSI contributions due on any gains realised on share options will be subject to the same interest penalties as apply in the case of the late payment of PRSI contributions generally.
Provision is also being made in these Regulations for the return of PRSI contributions paid in respect of share-based remuneration by employed contributors, special contributors, by their employers and by self-employed contributors where those contributions were not due. In addition, provision is made for refunding PRSI contributions paid on certain shares, where those shares are subsequently forfeited.
The existing provisions relating to the payment of refunds of PRSI contributions to the next of kin, where the person due the refund dies, are also being extended to cover PRSI refunds due in relation to contributions paid in respect of sharebased remuneration which were not due and in the case of refunds on forfeited shares.