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kscouse
Joined: 29 Mar 2005
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 Posted: Tue May 22, 2007 2:42 am Post subject: Tax and Pension - 2 Years |
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Friend of mine has been at the same hakwon for 2 years earning 2.1 mil a month. She was was under the impression everything was legit - as her take home pay was 2mil. Exactly a 100 thou deducted - thats where the red flags started to flare.
She (British) is paying tax at 3.5% and assumed she was paying pension (thinking 100,000 would cover tax and pension)
The tax rate should be 1.6% and the pension at around 96 thou??? correct???
Obviously there is some kind of problem here - i told her i think that the boss probably hasnt been paying into pension and over taxing her????
I assume she is owed back taxes from her boss - and she infact owes pension monies???
Whats the offical answer from the experts??? this has been going on for 24 months and i think i kinda scared her with IFS and BUTS and no concrete answers
cheers |
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Tokki1
Joined: 14 May 2007
Location: The gap between the Korean superiority and inferiority complex
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| Posted: Tue May 22, 2007 5:30 am Post subject: Re: Tax and Pension - 2 Years |
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Last edited by Tokki1 on Tue May 22, 2007 6:29 am; edited 1 time in total |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue May 22, 2007 6:26 am Post subject: Re: Tax and Pension - 2 Years |
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| kscouse wrote: |
Friend of mine has been at the same hakwon for 2 years earning 2.1 mil a month. She was was under the impression everything was legit - as her take home pay was 2mil. Exactly a 100 thou deducted - thats where the red flags started to flare.
She (British) is paying tax at 3.5% and assumed she was paying pension (thinking 100,000 would cover tax and pension)
The tax rate should be 1.6% and the pension at around 96 thou??? correct???
Obviously there is some kind of problem here - i told her i think that the boss probably hasnt been paying into pension and over taxing her????
I assume she is owed back taxes from her boss - and she infact owes pension monies???
Whats the offical answer from the experts??? this has been going on for 24 months and i think i kinda scared her with IFS and BUTS and no concrete answers
cheers |
Medical last year was 2.24% of monthly salary.
Medical THIS year is 2.385%.
Pension is about 4.5 % of her salary.
Tax is per the withholding table - on line here:
http://www.nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp
for 2.1 mil she should enter 2100 (thousands) and the answer is:
Monthly Wage & Salary Income : ￦ 2,100 (in thousands)
The number of Dependents : 1 persons
Monthly Income Tax : ￦ 33,430
(will be deducted from Wage & Salary Income by your employer)
She can contact the foreign tax advocate office of the NTS here:
http://www.nts.go.kr/eng/front/faqs_qna/foreign.asp
Call pension at 1355.
She should also be elegible for 2 years severance (~4.2 mil) + airfare and final pay on completion of her contract. |
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kscouse
Joined: 29 Mar 2005
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| Posted: Tue May 22, 2007 7:15 am Post subject: |
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She recieved severance payments for both of her years.
For 24 months = 2.4million was deducted.
She needed to pay for the 2 year period
1)2,268,000 pension
2)1,238265 medical
3)802320 tax
Total - 4,308,585
im thinking she owes 1,908,585 to the pension office and for health care (providing the boss has been paying tax).
If the boss hasnt been paying pension - they owe 2.268.000
WOW WOW
She really had no idea that anything was up !!!
She is planning to stay in Korea for a while - will this effect her?? Can she simply wander up with the money and pay??? no fine or penalty???
cheers |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue May 22, 2007 8:28 am Post subject: |
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| kscouse wrote: |
She recieved severance payments for both of her years.
For 24 months = 2.4million was deducted.
She needed to pay for the 2 year period
1)2,268,000 pension
2)1,238265 medical
3)802320 tax
Total - 4,308,585
im thinking she owes 1,908,585 to the pension office and for health care (providing the boss has been paying tax).
If the boss hasnt been paying pension - they owe 2.268.000
WOW WOW
She really had no idea that anything was up !!!
She is planning to stay in Korea for a while - will this effect her?? Can she simply wander up with the money and pay??? no fine or penalty???
cheers |
IF she stays with the same employer it may come back to bite her.
IF she changes employers and gets a NEW VISA (makes a visa run) the clock starts again on all accounts except taxation. |
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kscouse
Joined: 29 Mar 2005
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| Posted: Tue May 22, 2007 7:33 pm Post subject: |
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Ttompatz - if her boss provides her with a letter of release and cancels her visa - and she finds another job - goes on a visa run - she (and her boss)will not be charged retroactively.
Is it 100% she can get a new visa - with no red flags???
Is it best to settle the debts now?? will they completely disappear and never turn up again if she gets a new visa and job? (for 2 years she new nothing about it)
Its quite alot of money for herself and her boss. |
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alabamaman
Joined: 25 Apr 2006
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| Posted: Tue May 22, 2007 7:58 pm Post subject: |
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The representatives at the National Healthcare Insurance Corporation will explain to your friend when her future employer enrolls her into the NHIP that (X) amount of KRW will have to be paid.
Once your friend calls her old employer (current one she's working for now) to inquire about payment of contributions, her old employer will end the phone call very shortly. |
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kscouse
Joined: 29 Mar 2005
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| Posted: Tue May 22, 2007 9:34 pm Post subject: Pension? |
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Medical will seek back payments.
Will pension be so dilligent?
Guess its best if everything is paid. |
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Squid
Joined: 25 Jul 2003
Location: Sunny Anyang
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| Posted: Tue May 22, 2007 10:08 pm Post subject: |
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Tax at 3.5%??
Another employer on the "self employed" rort...
It's becoming widespread.
With an employer who realizes they've been wrong and opts to work it out with you you can get a result- immediate switch to sliding tax scale and correct deductions for health, medical and unemployment insurance...
Without a reasonable employer, get another job pronto. |
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