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After-School Programs and $$$

 
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Thumbnail Postermonkey



Joined: 24 Jul 2006

PostPosted: Tue Mar 27, 2007 4:00 pm    Post subject: After-School Programs and $$$ Reply with quote

How common is it (when you agree to work in an after-school program at aa public school) to have the "recruiter" request that YOU open a bank account and let them hold the bankbook? And, the "recruiter" then takes payment from the PS (tuition from the kiddies) through the bank account you opened? And then MAYBE you get the salary you signed up for?

I've seen and heard a few stories about arrangements like this going horribly for the teacher. Naturally, I have STRONG misgivings about the whole thing - pay me directly, I say. Never mind the fact that your "recruiter" has your bank account and could pretty much do as he/she wants with the $$$.

Any thoughts on this would be appreciated. I've seen a lot of offers in the community where this is the arrangement and I am HIGHLY SUSPICIOUS of such arrangements.

OK, Discuss!!
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Gamecock



Joined: 26 Nov 2003

PostPosted: Tue Mar 27, 2007 4:05 pm    Post subject: Reply with quote

I've never heard of this situation before on these boards...anyone else?

Rolling Eyes
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RachaelRoo



Joined: 15 Jul 2005
Location: Anywhere but Ulsan!

PostPosted: Tue Mar 27, 2007 4:11 pm    Post subject: Reply with quote

Your 'recruiter' is probably not actually a recruiter and he is likely misrepresenting himself.

Almost all of the after school programs are run by third parties because the principals are too lazy to co-ordinate it themselves. What this means is that the recruiter is actually your employer, though your visa will say that your employer is your school. Your 'recruiter' will collect all the fees that the children pay and then they are responsible for paying you. This is ALWAYS done through a second bank account in your name because it is illegal for public schools to contract a third party to do their work.

Now I know that the second bank account thing seems pretty shady...but, well, this is Korea. If you trust this guy to pay you then it's all good. There's been some discussion on this board that you could be liable for taxes down the road.....I doubt it could happen, but it's a risk.
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Gamecock



Joined: 26 Nov 2003

PostPosted: Tue Mar 27, 2007 4:27 pm    Post subject: Reply with quote

Quote:
I've seen and heard a few stories about arrangements like this going horribly for the teacher.


This has been discussed alot here. I've NEVER actually heard a story of this situation going horribly wrong for the teacher. I'd be curious to hear one of these stories. The reality is there is the POTENTIAL for it to go bad. It's probably best to avoid it.

I worked one of these gigs for awhile. It was the easiest teaching job I ever had. It grated on me that the "director" was collecting 5 million a month for doing NOTHING while I was essentially supporting his lavish lifestyle. At least at a hogwan, the director risks his own dollars investing in a building and all the various expenses. In this situation the use of the school is practically free, there are no advertising costs, and the director uses your bank account to get his income tax-free. I have found that usually the director is a drinking buddy with the principal, which is how he landed the job. So if things go bad, don't expect help from the principal either.
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inkoreaforgood



Joined: 15 Dec 2003
Location: Inchon

PostPosted: Tue Mar 27, 2007 4:35 pm    Post subject: Reply with quote

When it all goes wrong, and it has happened, guess what crime the teacher gets charged with?
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RachaelRoo



Joined: 15 Jul 2005
Location: Anywhere but Ulsan!

PostPosted: Tue Mar 27, 2007 5:04 pm    Post subject: Reply with quote

inkoreaforgood wrote:
When it all goes wrong, and it has happened, guess what crime the teacher gets charged with?


Please explain.
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Gamecock



Joined: 26 Nov 2003

PostPosted: Tue Mar 27, 2007 5:34 pm    Post subject: Reply with quote

Again, I'm not doubting it can go wrong, but I'd like to hear an example. In all the discussions on this board the talk has only been hypothetical. You could owe taxes on all the income earned by the program, not just your salary (which would be ALOT of taxes). But you would not be charged with a crime.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Tue Mar 27, 2007 5:39 pm    Post subject: Re: After-School Programs and $$$ Reply with quote

Thumbnail Postermonkey wrote:
How common is it (when you agree to work in an after-school program at aa public school) to have the "recruiter" request that YOU open a bank account and let them hold the bankbook? And, the "recruiter" then takes payment from the PS (tuition from the kiddies) through the bank account you opened? And then MAYBE you get the salary you signed up for?

I've seen and heard a few stories about arrangements like this going horribly for the teacher. Naturally, I have STRONG misgivings about the whole thing - pay me directly, I say. Never mind the fact that your "recruiter" has your bank account and could pretty much do as he/she wants with the $$$.

Any thoughts on this would be appreciated. I've seen a lot of offers in the community where this is the arrangement and I am HIGHLY SUSPICIOUS of such arrangements.

OK, Discuss!!


It is a tax scam and you face getting seriously SCREWED.

The "recruiter" is actually running an afterschool program that us sublet to the school but he does not have a licence to employ foreign teachers.
The school officially holds your E2 but your employer is the "recruiter".

The school can't pay him directly so they pay into an account in your name, he skims off the profits and pays you your salary.

YOU are responsible for the taxes on the WHOLE amount the school pays into the extra account (in theory - your wagesa) and this leaves you on the hook for MILLIONS of won in unpaid taxes.

DON'T DO IT.
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khyber



Joined: 16 Jan 2003
Location: Compunction Junction

PostPosted: Tue Mar 27, 2007 5:47 pm    Post subject: Reply with quote

go to efl-law..in the FAQ section there is a piece that deals with this SPECIFICALLY.

I've never heard of it happenning and wondered if anyone would actually fall for it.

Don't do it!
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Aussiekimchi



Joined: 21 Apr 2006
Location: SYDNEY

PostPosted: Tue Mar 27, 2007 6:02 pm    Post subject: Reply with quote

I worked for a recruiting company last year who was doing this.
It is pure money laundering.
Basically the school can't pay straight into your recruiter's bank account only yours so that is why they get you to set up an account in your name. But because so much money is going in and they do not trust you, they will probably ask you to hand over the bank book and atm card and then pay you a salary each month.
I would imagine it is breaking countless laws and also I would imagine that you are officially being ticketed as earning the total amount.
I don't know all the tax laws and loop holes here but if the school is paying 5MIL into a bank account under your name for the work you did, there would be tax on that. And it will be more than 3.3%.
The recruiter probably won't be paying tax.
I have not heard of anyone having any problems with this set up but as we ARE in Korea, it will be just a matter of time.
You should check out who will be the sponsor of your visa, who will be the one paying you. Have it in writing when they pay days are and the consequences for late payments and procedures if this happens.
I am a member of the recruiting industry here and I have met some pretty shady characters. I dunno if I would be happy waiting each month for one of these guys to pay me.
At least make sure the company you are doing this through is one of the bigger ones which will not suddenly disappear half way through.
Check out business numbers and recruiting licenses.
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Thumbnail Postermonkey



Joined: 24 Jul 2006

PostPosted: Tue Mar 27, 2007 7:01 pm    Post subject: Reply with quote

I thought so....I am currently working in an elementary school in Seoul and my school went out and "sub-contracted" their after-school program after X-Mas because (in their terms) the teachers couldn't take the time from their schedules to do after-school anymore. My take is that with 16 different "co-teachers," we just couldn't seem to get on the same page and people were starting to lose face as I was basically doing all the work anyways. I went back to my regular 22 class per week scenario after January and I love that!

Anyhow, thanks for the input. I wondered about this from afar, and as I get going with my job search I find that this scenario is pretty prevalent in a lot of the after-school job offers I am receiving lately. Of course, the "recruiters" don't give the info. about payment up front until you press them after reading the contract.

NEWBIES: Read your contracts!! As an amusing aside, the after-school program in my school is on their 5th teacher since December. Seems each of them have left due to payment problems. And these "recruiters" have a really big problem when I ask all these questions about the money.

AIGO!! Filthy "Recruiter" Bastards. Anyways, thanks!
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sock



Joined: 07 Oct 2006

PostPosted: Tue Mar 27, 2007 8:12 pm    Post subject: Reply with quote

Ha ha ha! You could always make some extra cash by scamming the scammers ...

Just ask the bank for TWO atm cards or bank books--go back the next day and tell them that you lost it. Give the "recruiter" one. Teach until your bank account has the 5 mil, then close the account and take the money that is in YOUR account. Twisted Evil

You should probably only do this the month before you leave for home permanently, though. Laughing Unless you have some strong ties to the Korean mafia and aren't worried about being protected when your "recruiter" comes looking for you.
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koon_taung_daeng



Joined: 28 Jan 2007
Location: south korea

PostPosted: Tue Mar 27, 2007 9:02 pm    Post subject: Reply with quote

yea thats what im going to do, im just going to keep all the money that comes into my bank account and when they stop payment im going to the labor board.

lets see what happens
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khyber



Joined: 16 Jan 2003
Location: Compunction Junction

PostPosted: Tue Mar 27, 2007 9:08 pm    Post subject: Reply with quote

Do it. Take it out. Then keep "loosing" or "having your card stolen" very soon after the money comes in.

Expect problems of course; they're bound to come...give some cash to your friends.
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BigBuds



Joined: 15 Sep 2005
Location: Changwon

PostPosted: Wed Mar 28, 2007 6:40 am    Post subject: Reply with quote

Have a big night out at a very expensive room-salon on your shady recruiter.
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