|
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 |
whitestboyalive
Joined: 09 Dec 2010
|
 Posted: Sat Jan 15, 2011 2:27 am Post subject: 1.5 million won being deducted from paycheck |
 |
|
So apparently my paycheck is going to be deducted approximately 1.5 million won, according to my co-teacher. This is due to taxes, and should be happening to everyone in SMOE. She told me it may not be this high, but to expect the worst.
The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won.
I'm just wondering if there is some way we can fight this. I was told in my contract my taxes would be taken off monthly. With this sudden deduction coming, I don't really think it is fair as it was not written in my contract.
Has anyone else heard about this? |
|
| Back to top |
|
 |
hondaicivic
Joined: 01 Jul 2010
Location: Daegu, South Korea
|
| Posted: Sat Jan 15, 2011 2:42 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| whitestboyalive wrote: |
So apparently my paycheck is going to be deducted approximately 1.5 million won, according to my co-teacher. This is due to taxes, and should be happening to everyone in SMOE. She told me it may not be this high, but to expect the worst.
The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won.
I'm just wondering if there is some way we can fight this. I was told in my contract my taxes would be taken off monthly. With this sudden deduction coming, I don't really think it is fair as it was not written in my contract.
Has anyone else heard about this? |
1.5 million?!......how much do you make? 20 million won a month? |
|
| Back to top |
|
|
whitestboyalive
Joined: 09 Dec 2010
|
| Posted: Sat Jan 15, 2011 2:57 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
Haha, no no. It's to make up from the taxes they didn't tax me at these new rates. Apparently they should have been deducting it monthly, but now they wanna take it all off in my last month.
I've already been paying taxes. I don't see how this could possibly equal to 1.5 million. Very confused... as I only get paid 2.3 a month.
But that's 125,000 won per month. A bit high for just a mere tax increase, no? |
|
| Back to top |
|
|
bobbybigfoot
Joined: 05 May 2007
Location: Seoul
|
| Posted: Sat Jan 15, 2011 3:12 am Post subject: |
|
|
| This better be a joke. |
|
| Back to top |
|
|
BoholDiver
Joined: 03 Oct 2009
Location: Canada
|
| Posted: Sat Jan 15, 2011 3:46 am Post subject: |
|
|
Ask for calculations and explanations in writing in English. Accept no less. Then post it here and/or ask more people.
Last I heard the tax deduction for foreigners was axed just a month ago. Maybe it was axed a year ago? |
|
| Back to top |
|
|
kprrok
Joined: 06 Apr 2004
Location: KC
|
| Posted: Sat Jan 15, 2011 4:05 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| whitestboyalive wrote: |
| I'm just wondering if there is some way we can fight this. I was told in my contract my taxes would be taken off monthly. With this sudden deduction coming, I don't really think it is fair as it was not written in my contract. |
This is just pure gold. Are you actually being serious here? Or is this part a big joke? If you're serious, that's just pathetic.
Do you really believe that the government's tax policies don't override what is written into your, or for that matter any, contract? Seriously? Didn't you ever pay taxes back in your home country? If you underpay, you owe a big chunk at the end of the year. If you overpay, you get a refund. This is pretty standard everywhere I've ever been. |
|
| Back to top |
|
|
morrisonhotel
Joined: 18 Jul 2009
Location: Gyeonggi-do
|
| Posted: Sat Jan 15, 2011 4:12 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| kprrok wrote: |
| Didn't you ever pay taxes back in your home country? If you underpay, you owe a big chunk at the end of the year. If you overpay, you get a refund. This is pretty standard everywhere I've ever been. |
Even so, it does seem rather ridiculous to change the tax rate and not implement that change straight away. |
|
| Back to top |
|
|
interestedinhanguk
Joined: 23 Aug 2010
|
| Posted: Sat Jan 15, 2011 4:12 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| kprrok wrote: |
| whitestboyalive wrote: |
| I'm just wondering if there is some way we can fight this. I was told in my contract my taxes would be taken off monthly. With this sudden deduction coming, I don't really think it is fair as it was not written in my contract. |
This is just pure gold. Are you actually being serious here? Or is this part a big joke? If you're serious, that's just pathetic.
Do you really believe that the government's tax policies don't override what is written into your, or for that matter any, contract? Seriously? Didn't you ever pay taxes back in your home country? If you underpay, you owe a big chunk at the end of the year. If you overpay, you get a refund. This is pretty standard everywhere I've ever been. |
I think the OP is expressing frustration at the fact that his school didn't deduct taxes as they were (supposedly) required to do. Unless this new tax law/rule is retroactive, the OP has a legitimate complaint. |
|
| Back to top |
|
|
Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
|
| Posted: Sun Jan 16, 2011 6:18 am Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
|
| Back to top |
|
|
carleverson
Joined: 04 Dec 2009
|
| Posted: Sun Jan 16, 2011 3:30 pm Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| whitestboyalive wrote: |
So apparently my paycheck is going to be deducted approximately 1.5 million won, according to my co-teacher. This is due to taxes, and should be happening to everyone in SMOE. She told me it may not be this high, but to expect the worst.
The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won.
I'm just wondering if there is some way we can fight this. I was told in my contract my taxes would be taken off monthly. With this sudden deduction coming, I don't really think it is fair as it was not written in my contract.
Has anyone else heard about this? |
Don't worry. They deducted almost all of my paycheck during my first month. |
|
| Back to top |
|
|
methdxman
Joined: 14 Sep 2010
|
| Posted: Sun Jan 16, 2011 4:30 pm Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| Young FRANKenstein wrote: |
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
Which means that they're raising taxes. Raising taxes refers to anything that increases government tax revenue. |
|
| Back to top |
|
|
nathanrutledge
Joined: 01 May 2008
Location: Marakesh
|
| Posted: Sun Jan 16, 2011 5:51 pm Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| methdxman wrote: |
| Young FRANKenstein wrote: |
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
Which means that they're raising taxes. Raising taxes refers to anything that increases government tax revenue. |
You want to have a semantics pissing match or something?
They're not raising taxes. There was a rule that said foreigners could A) pay Korean taxes like a Korean, B) pay Korean taxes like a Korean on 70% of their income, or C) pay a flat 15% on their income.
Now, obviously option's B and C are the best, depending on your level of income. English teachers always went with option B, regular tax on 70% of your income. BUT, last year, they eliminated that option so NOW, you must either A) pay Korean taxes like a Korean or B) pay the flat 15%.
Taxes here are tiered, just like taxes in most of our home countries. So, if you earn a little money, you are taxed at a low rate. The more you earn, the higher the rate. English teachers should be paying 1.5%-2.0% (you can go to the website below to find the exact numbers if you're so inclined).
OP, if you're paychecks are normally 2.1, I would imagine you're getting paid 2.3 a month. If so, then your taxes should be 414,000-552,000 per year. Assuming that they only deducted taxes on 70% of your income, 289,800 - 386,400 per year.
4,140,000 is what you would pay if the rate was 15% and you were paying on 27,600,000, 100% of your salary. At 19,320,000 (70%), your tax would be 2,898,000.
So, if my assumptions are correct, then you make 2.3 per month and are paying the flat 15% tax rate. The school was making you pay that on only 70% of your income, but the rules changed meaning you have to pay on all 100%. However, unless you're making oodles of money, you shouldn't use any of these plans. Just pay the regular tax on ALL your income. It's a HELL of a lot cheaper.
http://www.nts.go.kr/eng/ |
|
| Back to top |
|
|
Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
|
| Posted: Sun Jan 16, 2011 6:32 pm Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| methdxman wrote: |
| Young FRANKenstein wrote: |
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
Which means that they're raising taxes. Raising taxes refers to anything that increases government tax revenue. |
Semantics. The tax rate has always been the same for everyone in Korea. Foreigners have just enjoyed a 30% exemption. Taking away the exemption is not raising taxes; it's telling foreigners they are no longer special and have to pay just as everyone else has to. |
|
| Back to top |
|
|
methdxman
Joined: 14 Sep 2010
|
| Posted: Sun Jan 16, 2011 8:51 pm Post subject: Re: 1.5 million won being deducted from paycheck |
|
|
| Young FRANKenstein wrote: |
| methdxman wrote: |
| Young FRANKenstein wrote: |
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
Which means that they're raising taxes. Raising taxes refers to anything that increases government tax revenue. |
Semantics. The tax rate has always been the same for everyone in Korea. Foreigners have just enjoyed a 30% exemption. Taking away the exemption is not raising taxes; it's telling foreigners they are no longer special and have to pay just as everyone else has to. |
It's not semantics, it's reality. Income tax rates are hardly ever increased. It's political suicide. It's always the last resort.
But you still raise "effective" tax rates by expanding taxes which could mean expanding existing taxes or levying new ones. In this case, the 30% of the exemption is being trashed so it's an expansion of an existing tax against foreigners.
Changes in effective tax rates whether it's your personal effective tax rate or from the government's point of view are all that matter in most cases since actual tax rates almost always stay the same (at least for income).
In short, raising taxes means expanding them or touching the actual rates. In any case, more money out of our pockets. |
|
| Back to top |
|
|
jrwhite82
Joined: 22 May 2010
|
| Posted: Sun Jan 16, 2011 9:14 pm Post subject: |
|
|
Who cares if you call it "raising taxes" or "eliminating an exemption"? The tax rate doesn't really change, but the taxes YOU wind up paying are raised. So....you're both right!
Congrats! |
|
| 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
