Social Welfare Consolidation Act 2005 section 19

Winding-up and bankruptcy

Section 19 establishes the priority treatment of employee PRSI contributions in company liquidations and personal bankruptcy situations.

• PRSI deducted from employees' wages but not remitted by the employer is ring-fenced and does not form part of the company's or bankrupt's assets available to creditors.
• These unremitted PRSI deductions must be paid to the Social Insurance Fund ahead of all other priority debts, including those normally given preference under company and bankruptcy law.
• Employer PRSI contributions outstanding for the 12 months before insolvency rank as priority debts under bankruptcy law.
• Formal proof of these priority debts is generally not required unless specifically demanded under the relevant insolvency legislation.