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ssuprnova
Joined: 17 Dec 2010
Location: Saigon
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 Posted: Mon Jul 04, 2011 10:29 pm Post subject: |
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A Korean newspaper admitting that Korean hagwon owners are engaging in shady activities? 
Pardon me, I'm just going to go check whether pigs are taking to the air en masse. |
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murmanjake
Joined: 21 Oct 2008
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| Posted: Mon Jul 04, 2011 11:57 pm Post subject: |
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| meangradin wrote: |
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| Your tax rate 3.3% is incorrect. Are you on an E-2 visa? Then it should be somewhere around 1.8%. Meaning if you're making around 2 million a month you're getting cheated over 30,000 won each month. |
Is this really true? I own a hagwon and the local tax office told us that E-2 workers are supposed to pay 3.3%. I can assure you that we are not pocketing any of the money and that we pay another 3.3% to the tax office. |
Yah, I'm not 100% on this either. I work for a very legitimate hagwon and when I questioned the tax rate they called up every office they could and were told across the board it should be 3.3%
They even filed my return for me this year, got me 84,000 back, deposited directly into my account! If I were paying 30,000 more a month than I should been, then that return would have been much higher. |
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morrisonhotel
Joined: 18 Jul 2009
Location: Gyeonggi-do
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| Posted: Tue Jul 05, 2011 1:00 am Post subject: |
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| 3.3% is, according to the NTS's website, too much for your average hagwon worker. Your average hagwon teacher should be paying approx. 1.6% (on a sliding scale so goes up if you earn lots, down if you don't). Check the website yourself and calculate how much you should be paying by visiting the website. You can see a rough guide to how much you pay via spreadsheet on that link too. |
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murmanjake
Joined: 21 Oct 2008
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| Posted: Tue Jul 05, 2011 1:43 am Post subject: |
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| maybe the website is wrong |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Jul 05, 2011 2:00 am Post subject: |
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3.3% IS the correct rate...for an independent contractor. Maybe the tax office just assumed these people were independent contractors?
Or couldn't be bothered to check properly. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Jul 05, 2011 2:02 am Post subject: |
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| ssuprnova wrote: |
A Korean newspaper admitting that Korean hagwon owners are engaging in shady activities?
. |
Those types of articles (complaining about hakwons..fees, late hours) have been around for years. There's always been two sides to this debate. |
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CarolinaTHeels
Joined: 07 Apr 2011
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| Posted: Tue Jul 05, 2011 5:38 am Post subject: |
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So it basically comes down to this correct.....
If you are an Independent Contractor on your contract the hagwon does not have to pay pension and you are taxed around 3.3%.
If you are an employee on your contract it is required by law to get pension and be taxed around 1.8%
Moral of the story DONT SIGN CONTRACTS where you are an independent contractor. |
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ChrisLamp
Joined: 27 Jul 2010
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| Posted: Tue Jul 05, 2011 6:11 am Post subject: |
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| Ok so I've been wading through page after page on Dave's trying to figure out exactly how this would work if my boss hadn't paid into my pension and I wanted to claim it. From what I can gather I would have to go to the pension office, give them my 4.5% and all my info and wait three months to get my refund. Great, but from what I can tell the next step is that they "get after" my boss to pay his 4.5%. But do these guys pension office guys have any teeth? What are the chances that I go through this and he refuses to pay? Do I just get my 4.5% back and a "sorry, better luck next time?" or do they really follow through making these guys pay? Do I also have to complain to the Dept of Labor or is a single trip to the pension office going to get me the 4.5% that is owed to me? Thanks for your input guys. This is pretty confusing. |
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murmanjake
Joined: 21 Oct 2008
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| Posted: Tue Jul 05, 2011 6:51 am Post subject: |
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| CarolinaTHeels wrote: |
So it basically comes down to this correct.....
If you are an Independent Contractor on your contract the hagwon does not have to pay pension and you are taxed around 3.3%.
If you are an employee on your contract it is required by law to get pension and be taxed around 1.8%
Moral of the story DONT SIGN CONTRACTS where you are an independent contractor. |
I am paying 3.3% as an employee, not an independent contractor.
I am paying into pension and I have received my national health plan insurance card.
My boss has verified the tax rate with the tax office. She has called them multiple times to confirm because I've brought information from this board to her attention.
Where, beyond that automatic calculator, can the 1.8% tax rate be found and verified? |
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Tue Jul 05, 2011 7:01 am Post subject: |
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| ChrisLamp wrote: |
| Ok so I've been wading through page after page on Dave's trying to figure out exactly how this would work if my boss hadn't paid into my pension and I wanted to claim it. From what I can gather I would have to go to the pension office, give them my 4.5% and all my info and wait three months to get my refund. Great, but from what I can tell the next step is that they "get after" my boss to pay his 4.5%. But do these guys pension office guys have any teeth? What are the chances that I go through this and he refuses to pay? Do I just get my 4.5% back and a "sorry, better luck next time?" or do they really follow through making these guys pay? Do I also have to complain to the Dept of Labor or is a single trip to the pension office going to get me the 4.5% that is owed to me? Thanks for your input guys. This is pretty confusing. |
You should pm Young FRANKenstein as he is a pro at this and can give you specific directions.
The pension office will FINE your hagwon boss and you WILL get your money. Do not thinknotherwise, as long as your pay your side they will be on YOUR side |
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CarolinaTHeels
Joined: 07 Apr 2011
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| Posted: Tue Jul 05, 2011 7:21 am Post subject: |
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murman,
how much do you make? |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Jul 05, 2011 8:08 am Post subject: |
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| murmanjake wrote: |
| CarolinaTHeels wrote: |
So it basically comes down to this correct.....
If you are an Independent Contractor on your contract the hagwon does not have to pay pension and you are taxed around 3.3%.
If you are an employee on your contract it is required by law to get pension and be taxed around 1.8%
Moral of the story DONT SIGN CONTRACTS where you are an independent contractor. |
I am paying 3.3% as an employee, not an independent contractor.
I am paying into pension and I have received my national health plan insurance card.
My boss has verified the tax rate with the tax office. She has called them multiple times to confirm because I've brought information from this board to her attention.
Where, beyond that automatic calculator, can the 1.8% tax rate be found and verified? |
The income tax is progressive. Your tax rate could be anywhere from 0% to 36% depending on your income level. We do not know how much you are making and it's easily possible that you are making enough to pay over 3% as the correct rate - at only 2.9 million won per month you will be over.
Your total salary could include a housing allowance if you get one or other taxable benefits, so the rate could be correct.
As for the monthly withholding calculator, recent tax changes have made the total income tax due at year end higher than it was before. The monthly withholding calculator has not been adjusted to reflect these changes and it seems likely that using it will result in under-withholding for many teachers. The tax office may have changed their advice to reflect this problem. |
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Los Angeloser
Joined: 26 Aug 2010
Location: Korea
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| Posted: Tue Jul 05, 2011 8:32 am Post subject: |
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| TheUrbanMyth wrote: |
3.3% IS the correct rate...for an independent contractor. Maybe the tax office just assumed these people were independent contractors?
Or couldn't be bothered to check properly. |
Why would the tax office "assume" such a STUPID thing when 80-90% E-2 visa holders do not work at after-school programs. I'd say that after-school programs might illegally classify E-2 visa holders as "independent contractors/free lancers" since Immigration says E-2 visa holders CANNOT be "independent contractors/free lancers" the last I knew. Why would you say the tax office might "assume" such a thing? |
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Los Angeloser
Joined: 26 Aug 2010
Location: Korea
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| Posted: Tue Jul 05, 2011 8:34 am Post subject: |
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| TheUrbanMyth wrote: |
| ssuprnova wrote: |
A Korean newspaper admitting that Korean hagwon owners are engaging in shady activities?
. |
Those types of articles (complaining about hakwons..fees, late hours) have been around for years. There's always been two sides to this debate. |
Not in Korean language media outlets and nice try at downplaying it. |
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CarolinaTHeels
Joined: 07 Apr 2011
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| Posted: Tue Jul 05, 2011 8:39 am Post subject: |
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| ontheway wrote: |
| murmanjake wrote: |
| CarolinaTHeels wrote: |
So it basically comes down to this correct.....
If you are an Independent Contractor on your contract the hagwon does not have to pay pension and you are taxed around 3.3%.
If you are an employee on your contract it is required by law to get pension and be taxed around 1.8%
Moral of the story DONT SIGN CONTRACTS where you are an independent contractor. |
I am paying 3.3% as an employee, not an independent contractor.
I am paying into pension and I have received my national health plan insurance card.
My boss has verified the tax rate with the tax office. She has called them multiple times to confirm because I've brought information from this board to her attention.
Where, beyond that automatic calculator, can the 1.8% tax rate be found and verified? |
The income tax is progressive. Your tax rate could be anywhere from 0% to 36% depending on your income level. We do not know how much you are making and it's easily possible that you are making enough to pay over 3% as the correct rate - at only 2.9 million won per month you will be over.
Your total salary could include a housing allowance if you get one or other taxable benefits, so the rate could be correct.
As for the monthly withholding calculator, recent tax changes have made the total income tax due at year end higher than it was before. The monthly withholding calculator has not been adjusted to reflect these changes and it seems likely that using it will result in under-withholding for many teachers. The tax office may have changed their advice to reflect this problem. |
I was assuming we are talking about normal NET that make 2 - 2.3 a month. |
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