S.I. No. 62/1988 - Social Welfare (Miscellaneous Provisions For Self-Employed Contributors) Regulations, 1988

S.I. No. 62 of 1988.

SOCIAL WELFARE (MISCELLANEOUS PROVISIONS FOR SELF-EMPLOYED CONTRIBUTORS) REGULATIONS, 1988.

The Minister for Social Welfare, in exercise of the powers conferred on him by sections 2 (1) (as amended by section 10 of the Social Welfare Act, 1988 (No. 7 of 1988)), 3 and 7 of the Social Welfare (Consolidation) Act, 1981 (No.1 of 1981), sections 17A, 17D, 17F and 17G and paragraphs 1 and 3 of Part IIA of the First Schedule to the aforesaid Act (as inserted therein by the Social Welfare Act, 1988 ) and section 16 of the Social Welfare Act, 1988 hereby makes the following Regulations:—

PART I

1.

2.

"the Principal Act" means the Social Welfare (Consolidation) Act, 1981 ;

"the Act of 1988" means the Social Welfare Act, 1988 ;

"the Collector" means the Collector-General appointed under section 162 of the Income Tax Act, 1967 (No. 6 of 1967).

PART II *Determination of Contributions Payable*

3.

• (2) In the case of a person to whom this article refers, the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid shall, provided that the total amount of self-employment contributions payable by virtue of sub-article (1) has been paid, be 52 in any contribution year.

• (3) The provisions of this article shall, notwithstanding sub-article (1), also apply in the case of a person who becomes a self-employed contributor for the first time in any contribution year or who recommences insurable self-employment in any contribution year and who was previously in such contribution year an employed contributor in respect of whom contributions were payable by virtue of the provisions of article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 ( S.I. No. 87 of 1979 ).

4.

• (2) In the case of a person to whom this article refers the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid shall, provided that the total amount of self-employment contributions payable by virtue of sub-article (1) have been paid, be 52 in any contribution year.

5.

• (2) Notwithstanding sub-article (1) a self-employment contribution may be treated as paid in respect of any contribution week for which an employment contribution has been credited for the purposes of the contribution conditions for old age (contributory) pension, widow's (contributory) pension and orphan's (contributory) allowance requiring a minimum number of qualifying contributions to have been paid.

• (3) Where a person to whom this article refers has paid employment contributions and self-employment contributions for any contribution year and the aggregate of his reckonable income, reckonable emoluments (if any) and reckonable earnings has exceeded the sum specified in paragraph (d) of section 17C of the Principal Act he shall be entitled, subject to article 31, to a refund of the self-employment contributions paid on that portion of his reckonable income or reckonable emoluments (or both) which represents the difference between the aggregate of his reckonable income or reckonable emoluments (or both) and his reckonable earnings and the sum so specified.

6.

• (a) becomes a self-employed contributor subsequent to being an employed contributor in any contribution year, or

• (b) is a self-employed contributor prior to being an employed contributor in any contribution year and is a person to whom paragraph (a) or paragraph (c) of section 17C of the Principal Act refers, self-employment contributions shall be payable by him at whatever of the following amounts is appropriate:—

• (i) where the aggregate of his reckonable earnings, reckonable emoluments and reckonable income exceeds the sum for the time being specified in paragraph (d) of section 17C, an amount calculated at the percentage amounts specified in sub-paragraphs (i), (ii) or (iii) of paragraphs (a) or paragraph (c) of section 17C of the Principal Act on that portion of his reckonable income or reckonable emoluments (or both) which when combined with his reckonable earnings would bring the aggregate of his reckonable income, reckonable emoluments and reckonable earnings up to the sum so specified, or an amount calculated at the rate of £4 a week for each contribution week of insurable self-employment, whichever is the greater,

• (ii) where the aggregate of his reckonable income, reckonable emoluments and reckonable earnings does not exceed the sum specified in paragraph (d) of section 17C in the contribution year, an amount calculated at the percentage rates specified in sub-paragraph (i), (ii) or (iii) of paragraph (a) or paragraph (c) of the said section 17C of his reckonable income or reckonable emoluments in that contribution year or an amount calculated at the rate of £4 for each contribution week of insurable self-employment, whichever is the greater.

• (2) In the case of a person to whom this article refers the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid, shall (subject to the appropriate amount of self-employment contributions having been paid and, notwithstanding the provisions of paragraph (g) of section 17C of the Principal Act), be determined by deducting the number of contribution weeks in which the person was an employed contributor from 52, and the number so determined shall be regarded as the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid.

7.

8.

• (2) Where the amount which a self-employed contributor to whom sub-article (1) applies is less than the amount which, under paragraph (c) of section 17C of the Principal Act and these Regulations, he is liable to pay in any contribution year no contribution shall be regarded as having been paid by the self-employed contributor in respect of any week in that contribution year.

PART III *Voluntary Contributions for Self-Employed Contributors*

9.

10.

11.

12.

13.

• (a) after the date on which such contribution is due in accordance with that article but before the expiration of five months after the end of the contribution year to which it relates, or

• (b) after the date on which it is due in accordance with the said article 12 but before the expiration of 12 months after the end of the contribution year to which it relates, if the Minister is satisfied that there is good cause for late payment,

shall for the purposes of old age (contributory) pension, widow's (contributory) pension and orphan's (contributory) allowance as on and from the Thursday next following the expiration of 28 days after the date on which such contribution has been paid in the case of a voluntary contribution paid in one payment, or 28 days after the date on which the final instalment has been paid in the case of a voluntary contribution paid by instalments, be treated as having been paid on that date.

• (2) A voluntary contribution which is not paid within the periods specified in the proceeding sub-article shall be treated as not having been paid and shall be refunded by the Minister to the voluntary contributor.

PART IV *Excepted Emoluments*

14.

• (a) any income arising by way of payments under section 44 of the Health Act, 1947 (No. 28 of 1947) or under section 61 of the Health Act, 1970 (No. 1 of 1970) by a health board to or in respect of an individual and any income arising by way of payments on foot of a maintenance allowance under section 69 of the Health Act, 1970 to that individual,

• (b) any sums received by way of allowance, assistance, benefit or supplement under Parts II, III, IV or IVA of the Principal Act,

• (c) any sums received in respect of attendance at a training course provided or approved by An Foras Áiseanna Saothair,

• (d) any sums received in respect of participation in a scheme administered by An Foras Áiseanna Saothair and known as the Alternance Scheme,

• (e) any sums received in respect of employment under a scheme administered by An Foras Áiseanna Saothair and known as Teamwork,

• (f) any sums received in respect of participation in a scheme administered by An Foras Áiseanna Saothair and known as the Enterprise Allowance Scheme,

• (g) any sums received in respect of employment under a scheme administered by An Foras Áiseanna Saothair and known as the Social Employment Scheme,

• (h) any payments received by way of pension,

• (i) any emoluments, within the meaning of the Income Tax Act, 1967 , received by a person in respect of any of the following offices:

Offices belonging to either House of the Oireachtas;

Membership of the European Parliament;

Offices belonging to any court in the State;

Public Offices under the State.

• (j) any payments received under any scheme, contract, policy or other arrangement approved by the Revenue Commissioners for the purposes of section 8 (1) of the Finance Act, 1979 (No. 11 of 1979), which provides for periodic payments to an individual in the event of loss or dimunition of income in consequence of ill-health,

• (k) any payment which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in connection with or in consequence of, or otherwise in connection with the termination of the holding of an office or employment.

PART V *Collection of Self-Employment Contributions by the Collector-General in respect of Persons with Reckonable Emoluments*

15.

"the Income Tax Regulations" means the Income Tax (Employment) Regulations, 1960 ( S.I. No. 28 of 1960 );

"income tax month" means a month beginning on the 6th day of any the months of April to March in any contribution year and ending on the 5th day of the following month;

"a contributor" means a self-employed contributor who is in receipt of emoluments;

"emoluments" means reckonable emoluments as defined in section 2 (1) of the Principal Act as amended by section 10 of the Act of 1988;

"a contribution" means a self-employment contribution;

"an inspector of taxes" has the meaning assigned to it in section 161 of the Income Tax Act, 1967 .

16.

• (a) the amount of any contributions due by such contributor in respect of that payment of emoluments or

• (b) where the said amount cannot at the time of making such payment be ascertained, the amount reasonably believed by the employer to be so due.

• (2) Where the amount deducted under sub-article (1) (b) of this article is greater than the amount due by the contributor the employer shall repay the difference to the contributor.

• (3) A contribution payable by a contributor shall not be recoverable from him by his employer otherwise than by deduction in accordance with sub-article (1) of this article or under the provisions of Part IV of the Income Tax Regulations as applied to contributions.

17.

• (2) Contributions payable in respect of emoluments shall be remitted by the employer to the Collector.

18.

• (a) a return, in a form provided or approved by the Revenue Commissioners, in respect of each contributor who receives payment of emoluments during the course of that year showing in respect of those emoluments—

• (i) the total contributions payable as respects the contributor in the contribution year,

• (ii) the number of contribution weeks in the contribution year in which the contributor was in insurable self-employment with the employer,

• (iii) the dates of commencement and cessation of insurable self-employment occurring within the contribution year,

• (iv) the total emoluments in the contribution year, and,

• (b) a statement, declaration and certificate, in such form as may be provided or approved by the Revenue Commissioners, showing the total self-employment contributions which the employer was liable to remit in respect of every contributor in the contribution year.

19.

• (a) the total contributions deducted from the emoluments of the contributor during the contribution year,

• (b) the total contributions which the employer was liable to remit for the contribution year,

• (c) the number of contribution weeks in the contribution year in which the contributor was in insurable self-employment,

• (d) the date of commencement of the insurable self-employment where it occurred during the contribution year,

• (e) the total emoluments in the contribution year.

• (2) The certificate specified in sub-article (1) shall be in such form as may be provided or approved by the Revenue Commissioners.

20.

• (a) the total contributions which the employer was liable to remit for the contribution year up to and including the date of the cessation of insurable self-employment,

• (b) the number of contribution weeks in the contribution year in which the contributor was in insurable self-employment up to and including the date of the cessation of such employment,

• (c) the date of commencement of the insurable self-employment where it occurred during the contribution year,

• (d) The total emoluments in the contribution year up to and including the date of the cessation of insurable self-employment.

• (2) The certificate specified in sub-article (1) of this article shall be in such form as may be provided or approved by the Revenue Commissioners.

21.

( a ) the amount of each such payment of emoluments,

( b ) the contribution payable by the contributor in respect of each payment of emoluments,

( c ) the total contributions which the employer is liable to remit in respect or each payment of emoluments,

( d ) the dates of commencement and cessation of insurable self-employment occurring within the contribution year,

( e ) each contribution week of insurable self-employment.

• (2) The records specified in sub-article (1) of this article shall be in a form approved by the Revenue Commissioners and shall be retained by employers for a period of six years after the end of the contribution year to which they refer.

22.

23.

( a ) from the expiration of the time specified in article 22 for the payment of the amount, and

( b ) at the rate at which, for the time being, interest is chargeable on unpaid income tax under section 129 of the Income Tax Act, 1967 .

• (2) Interest charged on contributions shall be collected and shall be recoverable by the Collector and paid into the Social Insurance Fund.

24.

• (2) Where an estimate has been made or amended by the inspector of taxes of an amount due in respect of the contributions in accordance with sub-article (1) the contributor, in respect of whose emoluments such estimate has been made or amended, may appeal against such estimate or amendment in accordance with the provisions of the Income Tax Acts.

25.

26.

• (2) An employer or a person employed by the employer at the employer's premises shall, upon request made to him by an authorised officer at the employer's premises, produce to the authorised officer for inspection the records specified in article 21.

• (3) Where in pursuance of this article an authorised officer requests production of an employer's records, he shall, on request, show his authorisation for the purposes of this article to the person concerned.

27.

• (2) An employer shall, on receipt by him from an inspector of a notice in writing addressed to him at the address at which he resides or carries on business and incorporating or having annexed to it a form of declaration, furnish on the said form of declaration such information as is demanded in the notice in respect of any contributor who is or has been in his employment and shall sign and otherwise complete the declaration and deliver the same by hand or by registered post to the inspector, within the time specified by the inspector, not being less than six days from the date of such notice.

• (3) Where a notice under sub-article (2) is sent by post it shall be deemed to have been received by the person to whom it is addressed on the date on which it would be received in the ordinary course of post unless the contrary is proved.

PART VI *Miscellaneous Provisions*

28.

father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half brother, half sister, husband or wife of the self-employed contributor.

29.

30.

( a ) where the amount so calculated is a multiple of 5p or 10p that amount shall be payable;

( b ) where the amount so calculated includes an amount which is more than 5p but less than 10p the amount payable shall be rounded up to the nearest 10p and

( c ) where the amount so calculated includes an amount which is less than 5p the amount payable shall be rounded down to the nearest 10p.

31.

32.

• (2) In calculating the amount of any repayment to be made under this article to a self-employed contributor the following amount shall be deducted:—

( a ) the amount of any self-employment contribution paid in error which has, under the provisions of the previous article been treated as paid on account of self-employment contributions or employment contributions properly payable, and

( b ) an amount equal to the amount of any benefit paid to such person (or to any other person) by reason of such contributions having been paid in error as aforesaid.

• (3) Application for the return of self-employment contributions paid in error shall be made to the Minister or the Collector within three years from the end of the contribution year in which such contributions were paid but in any particular case the Minister may extend the period within which such application may be made.

33.

• (2) Article 9 of the Social Welfare (Modifications of Insurance) Regulations, 1979 is hereby amended by the substitution of the following paragraph for paragraph (c) of subarticle (1) thereof:—

"( c ) Employment as a Minister of Religion where the employed person is a member of a class of persons in respect of whom the Minister certified prior to the 6th day of April, 1988, that the employment of such class of persons was insurable employment.".

GIVEN under the Official Seal of the Minister for Social Welfare this 6th day of April, 1988.

MICHAEL WOODS,

Minister for Social Welfare.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this 6th day of April, 1988.

RAY MACSHARRY,

Minister for Finance.

EXPLANATORY NOTE.

The Social Welfare Act, 1988 (No. 7 of 1988) provides for the introduction of a new system of social insurance coverage for self-employed persons with effect from 6 April 1988. These Regulations provide for certain matters in connection with the new scheme.

The Regulations provide at Part II for the manner of determining the contributions payable and the number of weeks in respect of which contributions will be regarded as paid in the case of:—

• (i) persons who commence or who cease to be self-employed contributors during the course of a contribution year;

• (ii) persons who are both employed and self-employed during the course of a contribution year;

• (iii) persons who have self-employment income from a number of sources; and

• (iv) persons whose only self-employment income is by way of emoluments subject to income tax under Schedule E.

The Regulations provide at Part III for the arrangements for payment of voluntary contributions by persons who cease to be self-employed contributors.

Part IV of the Regulations specifies types of emoluments to be disregarded in calculating reckonable emoluments for the purpose of self-employment contributions.

The Regulations at Part V assign to the Collector-General the responsibility for the collection of self-employment contributions in respect of self-employed persons with reckonable emoluments which are liable for income tax under Schedule E. The Regulations prescribe the duties of employers regarding deducting and remitting self-employment contributions, the keeping of records and the furnishing of statements and returns to the Collector-General and statements to contributors as to contributions paid, the charging of interest on contributions not paid by the due date, the collection of contributions on the basis of estimated amount due where adequate information on the emoluments of self-employed contributors is not available and the inspection of records by authorised officers. The Regulations also entitle a self-employed contributor to inspect his record or to obtain a statement of the record.

The Regulations provide at Part VI for a number of miscellaneous matters, including the definition of certain categories of person to be exempted from compulsory insurance as self-employed persons, the rounding of amounts of contributions payable and the return of self-employment contributions paid in error. The Regulations also provide for the continuation of existing social insurance coverage for certain Ministers of Religion who were insurable at modified rates on the introduction of the scheme of social insurance for the self-employed.