Korean Job Discussion Forums

vonnegutjr · Joined: 24 Mar 2009

Today, after seven months of working at my Epik sponsored Middle School, I was told by an administrator that I have to pay 7 months of uncollected back taxes. I'm from the States and there is this nifty rule that you can be tax free for two years if you didn't work in Korea for two years. Well. I've been working in Korea for two years but I left for a while after my first contract. I thought that might be why the rule applied. Also, I wasn't taxed for 7 months so I thought that I was under the rule. Apparently the administrator went to some meeting where she found out that I will be taxed for my housing allowance. So the reason she wasn't taxing me was because "she though it was such a little amount that she didn't need to include it on my paycheck, until she found out that my 400,000won housing allowance was to be included." ??? Just an excuse I'm pretty sure. So I almost quit in the summer and had another job but didn't. I also got taken for some of my overtime pay because they "forgot to tell me" the rate had changed from 25,000 to 20,000 won an hour this year. I wasn't sent the memo. Whoops. I'm being nickel and dimed. What can I do? Go to the labor board? I doubt much will happen.

I think I'm just screwed. I just was hopeful that working for the public school system had some relevance to professionalism. My previous academy was much more efficient and took care of its 100+ foreign teachers with no surprises.

I know other teachers in the same boat who have not been taxed yet. I wonder what will happen to them. Maybe their administrator is an equal model of professionalism.

Any help?

vonnegutjr · Joined: 24 Mar 2009

anyone?

Triban · Joined: 14 Jul 2009 Location: Suwon Station

My school is taking 5.3% medical and no pension or taxes so far. Medical is supposed to be 2.4%. My coordinator said it is handled by the school and they won't do anything about it.

Otherside · Joined: 06 Sep 2007

Vonnegut, what are you gonna take the school to the labour board about?
They aren't known to be sympathetic about tax evaders....

Seriously, you knew that you had to pay tax, and you almost got away with it too, however, you got called on it and now must pay what you owe. Simple as that really, sucks that you gonna take a big hit in 1 month, but after that, it's fine. As for the overtime, I doubt its nickel and diming you (they pay all teachers the same rate) rather you are just out of the loop.. Nothing new here.

I had a similar experience. After being here two years, I was due for a pay-upgrade on the P.S scale, which I negotiated prior to signing... (my 2 year anniversary in Korea, happened to be mid-way through a contract) The 2 year anniversary comes, get my payslip and no increase. I speak to my co-ordinator and the next day I get told as I've been here 2 years, I'm no longer tax free and almost all of my raise has been eaten by taxes.

Rusty Shackleford · Joined: 08 May 2008

Tax is what, 70K a month? So you will be up for a couple hundred K. Just ask to pay it off 100K a month. You should have it done by the end of your contract. Your school cocked up, but if this happened in the States you would still have to repay it back.

vonnegutjr · Joined: 24 Mar 2009

Triban- I don't think coordinators have any swing over anything. I don't fully understand but you must get pension. Do the other teachers get a similar 5.4% tax? It sounds shady as usual.

Thank you Otherside. Your ability to suck K balls makes me understand that I was evading my taxes. When they handed me my pay stub I was evading taxes by not having taxes taken from my payment by the accounting administrator. My fault. I'm sorry government of Korea.

Yes, I don't think there is much the labor board would do. I said I think I'm screwed. I was misinformed on a couple hundred dollars worth of my overtime pay. the fact was they told me "you get payed 25,000" and then payed me 20,000 and said "sorry." The rate last year was 25,000 for all teachers. I didn't get the memo Sad

I just thought the two together might appeal to the board or DMOE or someone with a non biased sense of responsibility.

That is a silly little story about your pay increase and then being taxed. Thanks for sharing it.

It's my fault I was evading taxes all along and wasn't under the golden two year rule. I am such a dirty, deliberate, tax evading mongrol. I should have thought, "I will get caught for my thievery and pay everything at once after 7 months." Fanatastic!

vonnegutjr · Joined: 24 Mar 2009

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

OculisOrbis · Joined: 17 Jul 2006

pension: 4.5% and matched by employer

health: 2.54% and matched by employer

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

residents tax: 10% of the income tax

Contact:

Tax Office 02-397-1440
Pension Office 1355 (then press 7 for english, if i remember correctly)
Health Insurance 02-390-2000

Triban · Joined: 14 Jul 2009 Location: Suwon Station

Oculis has it right, that is exactly what my contract states. Now the problem is talking to my non-fluent handler to get this taken care of while not pissing them off. I'm thinking I will just show them a friend's pay stub and be like...do you understand?

sjk1128 · Joined: 04 Feb 2005

I concur. Occulis is correct.

Technically, your school was supposed to withhold all taxes in the month that income was earned. You could argue with them and call the tax office to try to win, but it may not be much money and you may be due to get it all back later, so it might not be worth the hassle.

Also, consider that even if you pay the tax now, your school will have to file a year end tax settlement (like a tax return) for you and may owe you most of the money back in Feb-Mar. If they do not do that, you will have a reason to complain and should do so at your local tax office. It is your responsibility to gather all your documents and turn them in to the school's accounting office in December so that they are aware of all your deductions, assuming you have any. Using a Korean credit card or debit card to pay for most things is smart because you get a deduction for that. Cash is more difficult to keep track of but not impossible.... Read about it all on the NTS website. Ask for a copy of the year end tax settlement at the start of next year. They have to give it to you, but don't expect it to be translated into English. Compare it to the Engish language calculator available at the NTS website. The numbers should closely match.

Good luck.

OculisOrbis · Joined: 17 Jul 2006

request their tax settlement calculations before they submit so that you can compare with the NTS automatic calculator that you ran yourself.

my previous public calculated that I owed 650 000won. My calculations said I should receive a refund of 610 000. After a bit of back and forth with the school accountant, via my coteacher, they accepted their errors and corrected them. I ended up receiving a 630 000won refund - a difference of more than 1.2 million won between what they were initially going to submit and the correct submission.

it is worth checking their calcs in advance as it will be extremely frustrating and time consuming to try to resolve errors after your settlement has been submitted to the tax office.