Social Welfare Consolidation Act 2005 section 17C

Covid-19: special warehousing and interest provisions for contributions

Section 17C establishes the debt warehousing scheme for employer PRSI contributions that became unpayable due to the Covid-19 pandemic, setting out the qualifying conditions, the phased time periods, and the interest rules that apply.

• Employers whose businesses were adversely affected by Covid-19 could defer payment of employer PRSI contributions without immediate interest charges, provided they continued filing returns and either had their affairs managed by Revenue's Personal or Business Division or notified Revenue of their inability to pay.
• The scheme operates across three periods: Period 1 covers the initial pandemic phase (from when the business was affected until end of 2021 or April 2022 for later claimants); Period 2 is a transitional year; and Period 3 runs from the start of 2023 or May 2023 until full repayment.
• Interest-free treatment applies where employers engaged with the Collector-General before 1 May 2024 regarding their warehoused debt and entered into a phased payment agreement, provided they comply with all filing obligations and agreement terms.
• Failure to comply with filing obligations or agreement terms triggers interest at 0.0274% per day on the outstanding balance, calculated from the date of non-compliance or from 1 May 2024 for employers who did not enter into agreements.