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Bearach
Joined: 12 Mar 2008
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 Posted: Mon Aug 11, 2008 5:23 pm Post subject: Registered as 'Business Person' |
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| I'm teaching in a Hagwon on an E-2 visa. My boss told me he registered me as a business person rather than a worker, so I pay less tax and don't have to contribute to the pension fund. Has anyone else heard of this? If I want to change my status can that be done? |
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CentralCali
Joined: 17 May 2007
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| Posted: Mon Aug 11, 2008 6:12 pm Post subject: |
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Your boss is dishonest. You are not a "business person" nor are you an "independent contractor." He's pulling this stunt so he can avoid paying the other things you're due as an actual employee, such as the pension and national health.
Not so long ago, the Korean courts stated that even for those persons whose contracts state they are independent contractors, if the facts of the employment belie that claim, then those persons are, in fact, employees. Your boss sets your work hours and the regulations you must follow in the work place. The courts said that's enough proof that you are an employee.
Immigration issued you an E-2 visa based on your boss being your sponsor as your employer, not as some client of yours. Tell your boss you're going to Immigration, the Labor Board, the Pension Office, and the Tax Office to get it fixed if he doesn't. Of course, you should wait until it's not beneficial for him to fire you for exercising your rights. Be sure to set aside the amount of money you should be paying for tax, health insurance, and pension. Also, do not plan on leaving Korea the same day as the end of your contract or the next day. Give yourself a week to get things settled.
If you're not contributing to the pension fund and you're an American or Canadian (I can't recall if there are any other countries whose citizens get the same or similar deal on pension) then you are making a big mistake. You're letting the boss steal money from you.
Don't let the National Health Insurance slide a minute longer. I just spent a month in the hospital. Thankfully, the NHI paid for 50% of the bill. You do not want to be footing your medical expenses all by yourself! |
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wylies99
Joined: 13 May 2006
Location: I'm one cool cat!
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| Posted: Mon Aug 11, 2008 7:52 pm Post subject: |
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| OP, don't do it. This also means NO health insurance. You never know if something might happen to you. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Aug 11, 2008 8:16 pm Post subject: Re: Registered as 'Business Person' |
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| Bearach wrote: |
| I'm teaching in a Hagwon on an E-2 visa. My boss told me he registered me as a business person rather than a worker, so I pay less tax and don't have to contribute to the pension fund. Has anyone else heard of this? If I want to change my status can that be done? |
At best your boss is dishonest and a liar.
As a subcontractor (illegal under the terms of your visa and the labor acts) you pay MORE tax as a subcontractor (3.3% as compared to about 1.7%) and do not get enrolled in the legally required NHIC medical or NPS (national pension) plans.
Aside the hazards of not having medical insurance (we all know that accidents never happen and foreigners never get sick here) there is also a net loss (assuming you are Canadian, American, Australian or South African) of about 2% of your gross annual salary.
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Bearach
Joined: 12 Mar 2008
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| Posted: Thu Aug 14, 2008 9:49 pm Post subject: |
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I asked him to change my status and he said he has corrected this now. I'll keep an eye on him!
Thanks for the help everyone. |
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CentralCali
Joined: 17 May 2007
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| Posted: Thu Aug 14, 2008 10:01 pm Post subject: |
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| Bearach wrote: |
I asked him to change my status and he said he has corrected this now. I'll keep an eye on him!
Thanks for the help everyone. |
Sure. I'm sure you don't want to find yourself in a hospital here with no insurance!
By the way, exactly how did your boss prove to you that your status has been changed? What you need to get from him every month is a statement of your pay and the specific deductions. Take that and compare it to what he's depositing into your bank account. Also check with the Tax Office, the Pension Office, and the National Health Insurance to ensure the money your boss is deducting from your pay is actually making it to the appropriate accounts for you.
If you're getting paid in cash, then he's taking deductions from you and just calling it by the appropriate names; however, he's really pocketing the money. Another thing to check is to ensure he's reported your actual salary to the abovementioned offices. |
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Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
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| Posted: Fri Aug 15, 2008 2:10 am Post subject: |
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| Bearach wrote: |
| I asked him to change my status and he said he has corrected this now. |
Don't take his word for it. Call the NTS or drop by the local office, and check your status personally. I recommend the personal visit, then if you discover he lied to you, you stay and change it before you leave. Don't take no for an answer, have them call the boss if necessary, and if he refuses to change it while on the phone, tell him you will not teach a single class while your tax status is incorrect.
As long as you are registered incorrectly, you will not have any pension or insurance because YOU are the one responsible for paying all of it (and YOU have to be the one to enroll for either). |
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