|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
Bollocks
Joined: 12 Feb 2009
|
 Posted: Sat Aug 08, 2009 9:49 pm Post subject: Tell me about taxation agreements. |
 |
|
Last month my hagwon hired a new guy. He's the same as I am, fresh out of university and no prior experience teaching English. Neither of our degrees are education related, but somehow he takes home 300,000W more per month than I do.
The only difference I'm aware of between us is that he's from America whereas I am Canadian. I've heard rumours that America has some funky taxation agreement with Korea that Canada hasn't, so the feds back home still get a slice of my pay, but he gets off scot free. Is this true?
Can Canada really keep their fingers in my pocket from across the world? What else could cause this income discrepancy? |
|
| Back to top |
|
 |
E_athlete
Joined: 09 Jun 2009
Location: Korea sparkling
|
| Posted: Sat Aug 08, 2009 10:05 pm Post subject: Re: Tell me about taxation agreements. |
|
|
| Bollocks wrote: |
Last month my hagwon hired a new guy. He's the same as I am, fresh out of university and no prior experience teaching English. Neither of our degrees are education related, but somehow he takes home 300,000W more per month than I do.
The only difference I'm aware of between us is that he's from America whereas I am Canadian. I've heard rumours that America has some funky taxation agreement with Korea that Canada hasn't, so the feds back home still get a slice of my pay, but he gets off scot free. Is this true?
Can Canada really keep their fingers in my pocket from across the world? What else could cause this income discrepancy? |
how much do you earn exactly...? |
|
| Back to top |
|
|
Bollocks
Joined: 12 Feb 2009
|
| Posted: Sat Aug 08, 2009 10:12 pm Post subject: |
|
|
| We're both paid 2.2million wons. He takes home 2.2 million wons. I take home 1.9. |
|
| Back to top |
|
|
E_athlete
Joined: 09 Jun 2009
Location: Korea sparkling
|
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sat Aug 08, 2009 10:19 pm Post subject: |
|
|
| Bollocks wrote: |
| We're both paid 2.2million wons. He takes home 2.2 million wons. I take home 1.9. |
Ok, he's not paying taxes, insurance, and/or pension. That is not goood. It's not legal either. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sat Aug 08, 2009 10:23 pm Post subject: |
|
|
| Bollocks wrote: |
| We're both paid 2.2million wons. He takes home 2.2 million wons. I take home 1.9. |
Ok, at 2200, you pay abou t 54 in insurance, 99 in pension, and let's just say 3.3 max for taxes, it's 73. So, that's 1974, or just under 2 mil won a month left. Do you get a pay slip that lists your deductions? Either way, the other teacher is either getting screwed or isn't legal. |
|
| Back to top |
|
|
Bollocks
Joined: 12 Feb 2009
|
| Posted: Sat Aug 08, 2009 11:35 pm Post subject: |
|
|
No, there's nothing in the way of paperwork for either of us.
You are uncannily accurate in your estimate of my income. I take home almost that exact amount. Which is rather irritating, because -as your say- that assumes max taxes.
Though I disagree with your assessment that he's getting screwed. I'd rather like to have his "extra money" pay-scheme.
What's this pay slip thingie called? I think I would like to ask for one from my boss. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Aug 09, 2009 12:00 am Post subject: |
|
|
| Bollocks wrote: |
No, there's nothing in the way of paperwork for either of us.
You are uncannily accurate in your estimate of my income. I take home almost that exact amount. Which is rather irritating, because -as your say- that assumes max taxes.
Though I disagree with your assessment that he's getting screwed. I'd rather like to have his "extra money" pay-scheme.
What's this pay slip thingie called? I think I would like to ask for one from my boss. |
When I say max taxes, I mean the 3.3 for independent contractors that most hagwons pay. You can apparently go to the tax office and have it changed to employee taxes, but don't think your employer is charging you extra, it's just what they think they are supposed to do.
You might think he's not getting screwed, but look at it step by step.
Health insurance. Pretty cheap, and what happens if something happens to him. PLUS, if he goes to another job after a year and they sign him up for insurance, he has to pay back premiums from the time he arrived in Korea, regardless if he was covered or not, so at his next job, he's going to owe 12 months of insurance payments. And you are only paying half of the insurance, 2.45%, the company pays the other half. He's going to owe 12 months of 4.9%l
Second, the pension. He's American, which means when he leaves Korea, he gets his entire Pension. Not just the 4.5% that he paid, but the 4.5% that the employer paid also. On 2.2 mil, that's almost 2.4 million won. He won't be getting that. And your pension will be given to your Canadian pension fund, so you won't lose out either, you just don't get a lump sum.
And taxes, sure, he's not paying a tiny bit of taxes, but add everything else up, and you see that he's getting screwed. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Aug 09, 2009 12:02 am Post subject: |
|
|
| Bollocks wrote: |
What's this pay slip thingie called? I think I would like to ask for one from my boss. |
Just a pay slip. I don't know the korean word for it, but they should know what you are talking about. |
|
| Back to top |
|
|
Bollocks
Joined: 12 Feb 2009
|
| Posted: Sun Aug 09, 2009 12:26 am Post subject: |
|
|
That's very helpful about the tax office. I'm going to get that sorted A.S.A.P.
Do you just go in and say, "Hey, my boss is charging me too much in tax, will you give me the difference? " I assume I need to get one of those pay slips in order to prove my case. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Aug 09, 2009 1:01 am Post subject: |
|
|
| Bollocks wrote: |
That's very helpful about the tax office. I'm going to get that sorted A.S.A.P.
Do you just go in and say, "Hey, my boss is charging me too much in tax, will you give me the difference? " I assume I need to get one of those pay slips in order to prove my case. |
Other people did this at the end of the year and just got a refund. And your boss isn't charging you too much tax, he's just charging you the wrong category. Take your contract in, and show that it says you are an employee, and not an independant contractor. It might help if you boss goes with you, but if he's working the other guy off the books, I doubt he wants to get involved to much with the tax man. It's probably going to be about 10-20k cheaper. There are some other threads on this board about people who have done it, if the search button is being nice today.  |
|
| Back to top |
|
|
Big Mac
Joined: 17 Sep 2005
|
| Posted: Sun Aug 09, 2009 4:54 am Post subject: |
|
|
| Carla wrote: |
Second, the pension. He's American, which means when he leaves Korea, he gets his entire Pension. Not just the 4.5% that he paid, but the 4.5% that the employer paid also. On 2.2 mil, that's almost 2.4 million won. He won't be getting that. And your pension will be given to your Canadian pension fund, so you won't lose out either, you just don't get a lump sum.
|
That's inaccurate. Canadians are eligible for lump sum refunds just as Americans are. So are Australians. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Aug 09, 2009 5:01 am Post subject: |
|
|
| Big Mac wrote: |
| Carla wrote: |
Second, the pension. He's American, which means when he leaves Korea, he gets his entire Pension. Not just the 4.5% that he paid, but the 4.5% that the employer paid also. On 2.2 mil, that's almost 2.4 million won. He won't be getting that. And your pension will be given to your Canadian pension fund, so you won't lose out either, you just don't get a lump sum.
|
That's inaccurate. Canadians are eligible for lump sum refunds just as Americans are. So are Australians. |
Ok, good to know. I get confused about which ones can and can't.  |
|
| Back to top |
|
|
E_athlete
Joined: 09 Jun 2009
Location: Korea sparkling
|
| Posted: Sun Aug 09, 2009 7:10 am Post subject: |
|
|
| Big Mac wrote: |
| Carla wrote: |
Second, the pension. He's American, which means when he leaves Korea, he gets his entire Pension. Not just the 4.5% that he paid, but the 4.5% that the employer paid also. On 2.2 mil, that's almost 2.4 million won. He won't be getting that. And your pension will be given to your Canadian pension fund, so you won't lose out either, you just don't get a lump sum.
|
That's inaccurate. Canadians are eligible for lump sum refunds just as Americans are. So are Australians. |
im a canuck. when can i claim my lump sum? More importantly, where do i go to claim it? |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Aug 09, 2009 7:11 am Post subject: |
|
|
| E_athlete wrote: |
| Big Mac wrote: |
| Carla wrote: |
Second, the pension. He's American, which means when he leaves Korea, he gets his entire Pension. Not just the 4.5% that he paid, but the 4.5% that the employer paid also. On 2.2 mil, that's almost 2.4 million won. He won't be getting that. And your pension will be given to your Canadian pension fund, so you won't lose out either, you just don't get a lump sum.
|
That's inaccurate. Canadians are eligible for lump sum refunds just as Americans are. So are Australians. |
im a canuck. when can i claim my lump sum? More importantly, where do i go to claim it? |
On your way out. When you have your outbound ticket go to the pension office and fill out the forms. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
