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Coffeeprincess
Joined: 19 Sep 2007
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 Posted: Thu Oct 25, 2007 12:57 am Post subject: TAXES |
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I just got my first paycheck. I'm a salaried employee in a foreign contractor position. I have to pay for my own medical/ dental and get no pension.
They took out 3.3% for taxes from my gross pay and that's all - no other deductions were made. Does this sound right?
Will I end up owing more in taxes to the Korean governnment at some later time? And will I end up owing taxes in my home country?
Thank you for any help with this matter. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Oct 25, 2007 1:04 am Post subject: Re: TAXES |
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| Coffeeprincess wrote: |
I just got my first paycheck. I'm a salaried employee in a foreign contractor position. I have to pay for my own medical/ dental and get no pension.
They took out 3.3% for taxes from my gross pay and that's all - no other deductions were made. Does this sound right?
Will I end up owing more in taxes to the Korean governnment at some later time? And will I end up owing taxes in my home country?
Thank you for any help with this matter. |
You are getting screwed if you are on an E2.
You cannot be a foreign contractor AND a salaried employee. Pick one.
E2s are salaried employees (by law) and unless you are making loads of cash your tax rate should be about 1.7%, medical IS 2.385% (employee contributionj) and pension IS 4.5% (employee contribution).
You will (if you get caught) be liable for paying medical and pension BACKDATED from your initial entry into Korea and will be liable for the employers portion as well if you have already moved on.
Sucks to be you.
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Coffeeprincess
Joined: 19 Sep 2007
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| Posted: Thu Oct 25, 2007 2:14 am Post subject: Re: TAXES |
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| ttompatz wrote: |
| Coffeeprincess wrote: |
I just got my first paycheck. I'm a salaried employee in a foreign contractor position. I have to pay for my own medical/ dental and get no pension.
They took out 3.3% for taxes from my gross pay and that's all - no other deductions were made. Does this sound right?
Will I end up owing more in taxes to the Korean governnment at some later time? And will I end up owing taxes in my home country?
Thank you for any help with this matter. |
You are getting screwed if you are on an E2.
You cannot be a foreign contractor AND a salaried employee. Pick one.
E2s are salaried employees (by law) and unless you are making loads of cash your tax rate should be about 1.7%, medical IS 2.385% (employee contributionj) and pension IS 4.5% (employee contribution).
You will (if you get caught) be liable for paying medical and pension BACKDATED from your initial entry into Korea and will be liable for the employers portion as well if you have already moved on.
Sucks to be you.
. |
Wow. Bitter much?
I'm not here on an E2. I know about the backdated medical and pension -I already have medical and I don't want pension.
I am in a salaried contractor position. I don't have to pick one.
Can anyone offer any friendly advice regarding my tax situation? |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Thu Oct 25, 2007 4:35 am Post subject: Re: TAXES |
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| Coffeeprincess wrote: |
| ttompatz wrote: |
| Coffeeprincess wrote: |
I just got my first paycheck. I'm a salaried employee in a foreign contractor position. I have to pay for my own medical/ dental and get no pension.
They took out 3.3% for taxes from my gross pay and that's all - no other deductions were made. Does this sound right?
Will I end up owing more in taxes to the Korean governnment at some later time? And will I end up owing taxes in my home country?
Thank you for any help with this matter. |
You are getting screwed if you are on an E2.
You cannot be a foreign contractor AND a salaried employee. Pick one.
E2s are salaried employees (by law) and unless you are making loads of cash your tax rate should be about 1.7%, medical IS 2.385% (employee contributionj) and pension IS 4.5% (employee contribution).
You will (if you get caught) be liable for paying medical and pension BACKDATED from your initial entry into Korea and will be liable for the employers portion as well if you have already moved on.
Sucks to be you.
. |
Wow. Bitter much?
I'm not here on an E2. I know about the backdated medical and pension -I already have medical and I don't want pension.
I am in a salaried contractor position. I don't have to pick one.
Can anyone offer any friendly advice regarding my tax situation? |
From what I can remember, that 3.3% figure seems right. Are you on one of those C visas? Seems strange, but I think it's a fixed tax rate. I could be wrong.
I wouldn't worry too much about taxes back home. How long will you have been here when you finally decide to go home?
Maybe someone can provide some insight on your tax situation. Call the tax office. |
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Coffeeprincess
Joined: 19 Sep 2007
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| Posted: Thu Oct 25, 2007 4:53 am Post subject: Re: TAXES |
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| yingwenlaoshi wrote: |
From what I can remember, that 3.3% figure seems right. Are you on one of those C visas? Seems strange, but I think it's a fixed tax rate. I could be wrong.
I wouldn't worry too much about taxes back home. How long will you have been here when you finally decide to go home?
Maybe someone can provide some insight on your tax situation. Call the tax office. |
Ok, I'll try calling the tax office. I just hope I can speak to someone on the other end who speaks English.
I don't know how long I'll be here. I could be here for a year or five years depending on how things go here. The Human Resources point person at my company isn't the most informative and he hardly speaks English. All he said was that no, I won't be required to pay taxes back home and that no, I won't end up owing more to the Korean government, but I can't help but be skeptical I guess. Only 3.3% in taxes TOTAL? It just sounds too good to be true. Thanks anyway. Appreciate it. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Thu Oct 25, 2007 5:03 am Post subject: Re: TAXES |
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| Coffeeprincess wrote: |
| yingwenlaoshi wrote: |
From what I can remember, that 3.3% figure seems right. Are you on one of those C visas? Seems strange, but I think it's a fixed tax rate. I could be wrong.
I wouldn't worry too much about taxes back home. How long will you have been here when you finally decide to go home?
Maybe someone can provide some insight on your tax situation. Call the tax office. |
Ok, I'll try calling the tax office. I just hope I can speak to someone on the other end who speaks English.
I don't know how long I'll be here. I could be here for a year or five years depending on how things go here. The Human Resources point person at my company isn't the most informative and he hardly speaks English. All he said was that no, I won't be required to pay taxes back home and that no, I won't end up owing more to the Korean government, but I can't help but be skeptical I guess. Only 3.3% in taxes TOTAL? It just sounds too good to be true. Thanks anyway. Appreciate it. |
It's actually a lot more than 3.3%. There are deductions on the gross and a smaller amount is taxed at a certain percentage. I just don't know how it works for whatever visa you're on. C visa? Anyway. |
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