Korean Job Discussion Forums

Weetbix Kid · Joined: 13 Oct 2008 Location: Gohyeon, Geoje

So, at our hagwon in the boonies, we haven't been paying tax or pension. Infact, the Korean teachers don't and we don't. When we asked our boss about it, he said 'his present'. Unsurprisingly, we didn't ask any further questions.

We've come to the attention of the powers that be apparently (when we have two weeks to go on our contract!) and our boss has told a waygook co-teacher that he has to pay all of his tax (at a rate of 5%) in one go. He hasn't spoken to us yet (we're a couple) but I am assuming it's the same.

The truth of the matter is, I didn't mind paying tax (although obviously preferred not to) but it is sticking a bit, that we'll have to pay 1.5million in taxes in one hit.

Does any one have any advice about what the legal take on this is? I have a feeling it's just the way the cookie crumbles, but would like to hear other opinions!

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

Tobias · Joined: 02 Jun 2008

Welcome to the club. I had to do this about a year ago, albeit my bill was for only 5 months. You're at a private won, so I think you're exempt from paying at least 30% of this if you're in your first two years if you're from the USA. Check into it.

And Urban's right. The rate should be down around 3 1/2 %.

Skippy · Joined: 18 Jan 2003 Location: Daejeon

Also, make sure the money is paid to the TAX office and not used as a last ditch money grab!

Weetbix Kid · Joined: 13 Oct 2008 Location: Gohyeon, Geoje

hey thanks for your responses!

Tobias, can you give me the heads up in regards to where I can find that info? I'm actually from NZ, but I'd still like to research it all.

Tobias · Joined: 02 Jun 2008

Try the site www.daveseslcafe.com and search the small mountain of posts on this subject.

Weetbix Kid · Joined: 13 Oct 2008 Location: Gohyeon, Geoje

I suppose I deserved that. Cheers for your help.

ontheway · Posted: Thu Jun 18, 2009 8:34 am Post subject:

You can check your monthly withholding here:

http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

If you are filing for the whole year, you should probably be paying less than 12 times the monthly withholding. I would guess that you should be paying about 2% income tax plus the local tax is 10% of the national income tax so about 2.2% total.

You can also check here:

http://www.nts.go.kr/eng/

click on: Automatic Calculation Service

Try the year end tax calculator to determine the total due for the year. It is NOT 5%, unless you are making a lot more than the usual E2 teacher.

yingwenlaoshi · Joined: 12 Feb 2007 Location: ... location, location!

He's just ripping you off. Get the tax office to call him or tell him you'll call the tax office and get them to call him. 5% my arse. He's just screwing with you. Tell him so and threaten to go to the tax office. If you do go to the tax office, make sure you file your taxes after. Another thing you could do is tell him you're also going to the pension and health insurance offices where he'll have to fork over 7% of your salary.

Fight fire with fire.

the ireland · Joined: 11 May 2008 Location: korea

you could threaten to go to the pension office, and he will have to pay his part of the pension, but you will also have to back pay yours too, so be careful as if you may have to pay more than the 1.5 million.

call the tax office and find out if you haven't paid then tell them you want to clear it up, prob for the best to pay it at their rate than let your boss take it out of your wages.

if you really want to stick it to the boss and don't mind the possibility of getting burned, then follow the advice about and threaten him with the pension office, tell him that he will get a fine and have to pay the backdated pension of all the teachers if you call them. then politely ask him to pay your tax and get you out of there rather than have to pay everything he really owes.

bassexpander · Joined: 13 Sep 2007 Location: Someplace you'd rather be.

I agree with Ying. Have the tax office call him, and tell him, "My present."

moosehead · Joined: 05 May 2007

insist on a STAMPED (that's the little red stamp virtually ALL Ks use with their signature) tax certificate.

it will have to be prepared by an accountant who will make sure the amounts are correct and deposited into the right offices.

there was a time when this info was always insisted upon to newbies but it's drifted off as more and more people go to public schools and/or don't have the problems anymore. maybe w/the economy the way it is, it's a problem again? donno but this is very important upon leaving your job.

I found out just how important at the end of my first contract when it turned out the dir was taking out 70,000 a month and pocketing it - not paying taxees or pension; it caused a HUGE ruckus but it all worked out and in the end I was refunded around 345,000 plus severance etc.

good luck and don't hesitate to go to the Labor Office.

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

Tobias · Joined: 02 Jun 2008

Weetbix Kid · Joined: 13 Oct 2008 Location: Gohyeon, Geoje

Thanks very much for all your help (including the websites I was slow to check out)

Just to update you, my boss is taking 3% tax. I was about to argue the toss on this, and go for 2.2% when he offered to pay half, as it was actually his mistake. I was gobsmacked. So I'm paying 1.5% tax. I reckon that's probably one of the better deals I could have got!