Korean Job Discussion Forums

[elliemk]

Hi All,

Well, I think I have this figured out, but I need to know if my figures are correct, so if you can help me, I would really appreciate it. Especially since my boss said he had to pay 450,000 W for health insurance and then I got a bill for 360,240 for health insurance and 47,970 for something else (haven't taken it to my boss, as it came on Saturday). How can that be? Seems as if they're several thousand won off what I should be paying, right?

Here's what I've figured:

Income tax (3.3%) 75,900 W - monthly
Health Insurance 109,710 (4.77% of 2,300,000)
My share: 54,855 (164,565 every three months)
Pension (4.5% of 2,300,000) 103,500 - monthly

Total taken out for all 234,255

By the way, I arrived on 8/21, but the bill says 8/20. So, that's another error.

Thanks for all your help in advance.

[garykasparov]

http://koreabridge.com/jobforums/index.htm

Health Insurance and Pension look fine. However, 3.3% is the tax rate applicable to "independant contractors." He'll pocket your money.

[elliemk]

So, what should the tax rate be, please? Thanks.

[elliemk]

PS - The Korean tax site calculates amount in pounds, not dollars or won, so I am confused as to the actual percentage for my tax bracket. Thanks.

[Jellypah]

Income tax
Each month, tax should be deducted from the Employee’s monthly salary for income tax in accordance with Korean law. This can be calculated on the Korean government tax website (Korean: http://www.nts.go.kr /English: http://www.nts.go.kr/eng/default.html) and is different for different salaries. Just go to the monthly withholding tax calculator to work it out. Residence tax should also be added to this and is 10% of your tax rate (Example: W30,000 income tax per month would be W3,000 residence tax per month, total tax per month = W33,000). These are the current rates and monthly payment amounts:

Salary per Month Tax Rate Income Tax Payment per month Including 10% residence tax
2,000,000 1.60% 31,850
2,100,000 1.76% 36,780
2,200,000 1.99% 43,780
2,300,000 2.36% 54,270
2,400,000 2.67% 64,680
2,500,000 3.12% 77,880

[garykasparov]

EDIT

[elliemk]

The simplified tax withholding table is confusing to me. My employer is honest and will not deduct more than what is owed. My difficulty is figuring out exactly what I will owe. The link to the Korean tax site provides information in British pounds or European Euros. So what I am looking for is the amount I should have to pay (I am a US citizen). Thanks for the help and sorry for any confusion I contributed to.

Ellie

[Jellypah]

I know there's a little "pound" symbol there, but it's calculating in WON. Type in 2300 and that's the amount of tax you should be paying.

[elliemk]

Okay, thanks very much!

[garykasparov]

http://koreabridge.com/jobforums/index.htm

(1) Click on "Taxes, Pension, Medical, Severance"
(2) Go to "Sticky: Taxes, Health Ins. and Pension (courtesy of Duff Recruiting)"


Income tax

Each month, tax should be deducted from the Employee's monthly salary for income tax in accordance with Korean law. This can be calculated on the Korean government tax website

http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp

and is different for different salaries. Just go to the monthly withholding tax calculator to work it out. Residence tax should also be added to this and is 10% of your tax rate (Example: W30,000 income tax per month would be W3,000 residence tax per month, total tax per month = W33,000). These are the current rates and monthly payment amounts:

Salary per Month Tax Rate Income Tax Payment per month Including 10% residence tax.

2,000,000 1.60% 31,850
2,100,000 1.76% 36,780
2,200,000 1.99% 43,780
2,300,000 2.36% 54,270
2,400,000 2.67% 64,680
2,500,000 3.12% 77,880

[elliemk]

How can I get my employer (whose employ I am leaving at the end of this month) to provide me with a receipt for taxes paid? He withheld the wrong amount by 25,000 or so. Thanks.

[kprrok]

You should have received pay slips every month showing the amounts withheld. That slip should have a school stamp on it.

But if it's only 25,000 won, don't worry too much. It's not worth it.

KPRROK

[tzechuk]

1. your tax is too high.

2. your health insurance is too high - I earn more than you, I pay less.

3. make sure you get all your pay slips because you CAN get a tax refund when it comes time to file for tax returns.

[elliemk]

My director says he has no stamp. Now what?

[garykasparov]

Did your director stamp your labor contract?