S.I. No. 726/2003 - Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) Regulations, 2003

The Minister for Social and Family Affairs, in exercise of the powers conferred on her by sections 4 (as amended by section 12 of the Social Welfare (Miscellaneous Provisions) Act, 2002 (No. 8 of 2002)), 10 (as amended by section 17 of the Social Welfare (Miscellaneous Provisions) Act, 2003 (No. 4 of 2003), 14 (as amended by section 18 of the Social Welfare (Miscellaneous Provisions) Act, 2003 (No. 4 of 2003), 20 (as amended by section 14 of the Social Welfare (Miscellaneous Provisions) Act, 2002 (No. 8 of 2002), and 27 (as amended by section 24 of the Social Welfare Act, 1996 (No. 7 of 1996)) of the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993) hereby makes the following Regulations:

Citation.

1. (1) These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2 Regulations, 2003.

(2) These Regulations and the Social Welfare (Consolidated Contributions and Insurability Regulations 1996 to 2003 shall be construed together as one and may be cited as the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2003.

Commencement.

2. These Regulations come into operation on 1 January 2004.

Definitions.

3. (1) In these Regulations -

“the Principal Act” means the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993);

“the Principal Regulations” means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ).

Definitions.

4. The Principal Regulations are amended in article (3) by -

(a) the substitution for the definition of “income tax year” of the following definition:

“ ‘income tax year’ means a year of assessment within the meaning of the Act of 1997;”,

(b) the substitution for the definition of “inspector of taxes” of the following definition:

“ ‘inspector of taxes’ means a person appointed under section 852 of the Act of 1997;”,

(c) the insertion after the definition of “inspector of taxes” of the following definition:

“ ‘payment’ with the meaning assigned in section 10 (1) (e) (as inserted by section 17 of the Social Welfare (Miscellaneous Provisions) Act, 2003 (No. 4 of 2003) of the Principal Act applies;”,

(d) the substitution for the definition of “reckonable earnings” of the following definition:

“ ‘reckonable earnings’ means -

(i) in the case of an employed contributor, not being a special contributor, emoluments derived from insurable employment or insurable (occupational injuries) employment, to which Chapter 4 of part 42 of the Act of 1997 applies, but without regard to Chapter 1of Part 44 of that Act, reduced by so much of the allowable contribution referred to in Regulations 41 and 42 of the Regulations of 2001, and

(ii) in the case of a special contributor -

(a) salaries, wages or other remuneration including non-pecuniary remuneration derived from insurable employment or insurable (occupational Injuries) employment to which the Act of 1997 (other than Chapter 4 of Part 42) applies or would apply if the employed contributor in receipt of the remuneration were resident in the State but without regard to Chapter 1 of Part 44 of that Act,

(b) payments to persons attending or engaged in courses of schemes provided or approved under -

(A) section 4 of the Labour Services Act, 1987 (No. 15 of 1987), or

(B) section 4 of the Agriculture (Research, Training and Advice) Act 1988 (No. 18 of 1988), and

(c) payments to persons attending or engaged in courses or schemes provided or approved by CERT limited;”,

(e) the deletion in the definition of “reckonable income” of “(other than non-pecuniary income)”,

(f) the deletion of the definition of “the Act of 1967” and the insertion of the following definition:

“ ‘the Act of 1997’ means the Taxes Consolidation Act 1997 (No. 39 of 1997);”,

(g) the deletion of the definition of “the Regulations of 1960” and the insertion of the following definition:

“ ‘the Regulations of 2001’ means the Income Tax (Employments) (Consolidated Regulations 2001 ( S.I. no 559 of 2001 );” and

(h) the deletion of the definition of “the (No. 2) Regulations of 1960”.

Definitions.

5. The Principal Regulations are amended in article 6 by the deletion of the definition of “casual employee”.

Deduction of contributions by employers from earnings and emoluments.

6. The Principal Regulations are amended in article (7) by -

(a) the insertion after sub-article (3) of the following:

“(3A) The obligation on an employer to deduct any contribution due in respect of a notional payment shall have effect as an obligation to deduct the contribution from any payment of earnings or emoluments actually made by the employer to the contributor on -

(a) the day the notional payment is made, or

(b) if there is no actual payment of earnings or emoluments made to the contributor on that day, the next day on which an actual payment of earnings or emoluments is made to the contributor following the time when the notional payment is made to the contributor.”,

(b) in sub-article (3) by substituting “Part 4 of the Regulations of 2001” for “Part IV of the Regulations of 1960”, and

(c) the insertion in sub-article (4) by inserting “an insufficiency of actual payments made to or on behalf of the employee or” after “under-deduction was due to”.

Remittance of contributions by employer.

7. The Principal Regulations are amended in sub-article 8(3) by substituting “14 days” for “9 days”.

Time limit for payment of contributions.

8. The Principal Regulations are amended in sub-article 9(1) by substituting “14 days” for “9 days”.

Return by employer to Collector-General at end of contribution year.

9. The Principal Regulations are amended in article 13 by substituting “Regulation 7(1) of the Regulations of 2001” for “Regulation 8(1) of the Regulations of 1960”.

Excepted emoluments.

10. The Principal Regulations are amended in sub-article 27 (g) by substituting “section 125 of the Act of 1997” for “ section 8 (1) of the Finance Act, 1979 (No. 11 of 1979)”.

Miscellaneous Provisions.

11. The Principal Regulations are amended by the deletion of article 52.

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

Explanatory Note

[This note is not a part of the Instrument and does not purport to be a legal interpretation]

These Regulations provide for a number of technical amendments to the Consolidated Contributions and Insurability Regulations to provide for Benefits-in-kind to be assessable for PRSI purposes, as announced in Budget 2003.