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WadRUG'naDoo
Joined: 15 Jun 2010
Location: Shanghai
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 Posted: Tue Jul 05, 2011 9:09 am Post subject: |
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| Next is outing principals embezzling money from after-school programs, etc. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Jul 05, 2011 3:39 pm Post subject: |
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| Los Angeloser wrote: |
| 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? |
Because the tax office and Immigration are two separate jurisdictions. While Immigration may say that E-2's can not be independent contractors" the tax office may very well (legally) tax them as such. And that is why there is such confusion here because one department's say-so does not cancel out the other's.
The tax office deals with many independent contractors and may well assume that this is simply just another type.
Plus those of us who have been here a few years and have dealt with Immigration/tax office/pension office know that advice varies from location to location and even among different officers from the SAME location. I've had that happen more times then I can count. |
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murmanjake
Joined: 21 Oct 2008
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| Posted: Tue Jul 05, 2011 5:32 pm 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. |
That could explain my situation. I have been paying 3.3% since august last year. On 2.3 mil. About two months ago the secretary filed our taxes. Last month I received a return of 84,000. Maybe I was overpaying, but only slightly? |
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ChrisLamp
Joined: 27 Jul 2010
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| Posted: Tue Jul 05, 2011 6:04 pm Post subject: |
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| marsavalanche wrote: |
| 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 |
thanks, I PMed him! |
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melee
Joined: 20 Jun 2011
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| Posted: Tue Jul 05, 2011 9:19 pm Post subject: |
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| so if jobs are offering 3.3% in the tax.. how can you tell them otherwise that it should be 1.6% for a hagwon salary... with the correct proof? Simply telling them that it should be 1.6% will make them think I am stupid. |
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Wed Jul 06, 2011 2:07 am Post subject: |
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| melee wrote: |
| so if jobs are offering 3.3% in the tax.. how can you tell them otherwise that it should be 1.6% for a hagwon salary... with the correct proof? Simply telling them that it should be 1.6% will make them think I am stupid. |
Link them to the website that has been provided in this thread and say you've talked with numerous teachers and they have all said the 3.3% is the tax rate for INDEPENDENT CONTRACTORS.
My current job had the INCORRECT tax rate and we negotiated the correct one.
I've also had a ton of jobs rescind their offers because they wouldn't budge on the 3.3%. 99% of the time if a hagwon is going to cheat you on your taxes, they will do it on plenty of other things during the duration of your employment. |
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angma
Joined: 02 Jul 2007
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| Posted: Wed Aug 03, 2011 8:53 am Post subject: Removed |
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Removed
Last edited by angma on Sun Aug 07, 2011 6:56 pm; edited 1 time in total |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Wed Aug 03, 2011 4:18 pm Post subject: |
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| angma wrote: |
| I recently discovered that my boss has been misreporting my income to the pension office. She has been reporting 1/2 of what I actually make for the past 2 of my 7 years working for her. This is my last month at the school. Anyone have any special advice. I just can't believe the woman would be so stupid -- to think that I wouldn't find out. Can the NPS hammer her into submission? |
As long as you have your pay slips and bank records to PROVE what you were making...then yes. |
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oldtrafford
Joined: 12 Jan 2011
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| Posted: Wed Aug 03, 2011 6:38 pm Post subject: |
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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.
Happy being a cockroach you son of a gun!!!  |
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angma
Joined: 02 Jul 2007
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| Posted: Thu Aug 04, 2011 1:06 pm Post subject: |
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| TheUrbanMyth wrote: |
| angma wrote: |
| I recently discovered that my boss has been misreporting my income to the pension office. She has been reporting 1/2 of what I actually make for the past 2 of my 7 years working for her. This is my last month at the school. Anyone have any special advice. I just can't believe the woman would be so stupid -- to think that I wouldn't find out. Can the NPS hammer her into submission? |
As long as you have your pay slips and bank records to PROVE what you were making...then yes. |
Pay stubs... no. Bank account transfer records... yes. |
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kardisa
Joined: 26 Jun 2009
Location: Masan
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| Posted: Thu Aug 04, 2011 3:03 pm Post subject: |
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| ThingsComeAround wrote: |
| ChrisLamp wrote: |
I am an employee and I have health insurance through National Health Insurance.
Is there a chance if I go though with this pension thing that he could turn nasty and fire me? Could he refuse to pay and I could be left with less? If I have in fact been paying too much tax how can I rectify that situation? This sounds like two giant fights that I'd rather not have (because they could make the next three months a living hell) Are you guys saying that I'm probably owed about w400 000 on taxes and 1 000 000 on pension? thats alot of money but it's less than my severance which I dont want to lose. Is this a big gamble or a sure thing? |
report him after you get everything owed. Make sure the NPS/tax man approaches him as you are flying out of Incheon  |
A friend of mine found out his pension wasn't being paid (no account set up), and reported it to the pension office, as well as to the tax office (they were reporting his salary as 900,000 and pocketing the difference in tax money) and lack of health insurance.
As of last friday, he has all 3 now. As of yesterday, he was told he's being fired. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Aug 04, 2011 4:40 pm Post subject: |
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| angma wrote: |
| TheUrbanMyth wrote: |
| angma wrote: |
| I recently discovered that my boss has been misreporting my income to the pension office. She has been reporting 1/2 of what I actually make for the past 2 of my 7 years working for her. This is my last month at the school. Anyone have any special advice. I just can't believe the woman would be so stupid -- to think that I wouldn't find out. Can the NPS hammer her into submission? |
As long as you have your pay slips and bank records to PROVE what you were making...then yes. |
Pay stubs... no. Bank account transfer records... yes. |
Bank account transfer records might be enough...pay stubs are helpful though because they show the breakdown and what you are being paid for. BATR's just show that you were paid a sum of money.
Try to get some pay slips from the boss...you can claim you need them in case you get audited back home. Then take them and the bank records to the pension office. Be aware though that you will have to back pay your share for those last 2 years (if not seven). |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Aug 04, 2011 4:40 pm Post subject: |
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| kardisa wrote: |
| ThingsComeAround wrote: |
| ChrisLamp wrote: |
I am an employee and I have health insurance through National Health Insurance.
Is there a chance if I go though with this pension thing that he could turn nasty and fire me? Could he refuse to pay and I could be left with less? If I have in fact been paying too much tax how can I rectify that situation? This sounds like two giant fights that I'd rather not have (because they could make the next three months a living hell) Are you guys saying that I'm probably owed about w400 000 on taxes and 1 000 000 on pension? thats alot of money but it's less than my severance which I dont want to lose. Is this a big gamble or a sure thing? |
report him after you get everything owed. Make sure the NPS/tax man approaches him as you are flying out of Incheon |
A friend of mine found out his pension wasn't being paid (no account set up), and reported it to the pension office, as well as to the tax office (they were reporting his salary as 900,000 and pocketing the difference in tax money) and lack of health insurance.
As of last friday, he has all 3 now. As of yesterday, he was told he's being fired. |
How long has he been working there? |
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kardisa
Joined: 26 Jun 2009
Location: Masan
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| Posted: Thu Aug 04, 2011 7:37 pm Post subject: |
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| TheUrbanMyth wrote: |
| kardisa wrote: |
| ThingsComeAround wrote: |
| ChrisLamp wrote: |
I am an employee and I have health insurance through National Health Insurance.
Is there a chance if I go though with this pension thing that he could turn nasty and fire me? Could he refuse to pay and I could be left with less? If I have in fact been paying too much tax how can I rectify that situation? This sounds like two giant fights that I'd rather not have (because they could make the next three months a living hell) Are you guys saying that I'm probably owed about w400 000 on taxes and 1 000 000 on pension? thats alot of money but it's less than my severance which I dont want to lose. Is this a big gamble or a sure thing? |
report him after you get everything owed. Make sure the NPS/tax man approaches him as you are flying out of Incheon |
A friend of mine found out his pension wasn't being paid (no account set up), and reported it to the pension office, as well as to the tax office (they were reporting his salary as 900,000 and pocketing the difference in tax money) and lack of health insurance.
As of last friday, he has all 3 now. As of yesterday, he was told he's being fired. |
How long has he been working there? |
A little over 4 months. Not long enough for the labor board to do anything, apparently. :/ |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Aug 04, 2011 8:31 pm Post subject: |
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| kardisa wrote: |
| TheUrbanMyth wrote: |
| kardisa wrote: |
| ThingsComeAround wrote: |
| ChrisLamp wrote: |
I am an employee and I have health insurance through National Health Insurance.
Is there a chance if I go though with this pension thing that he could turn nasty and fire me? Could he refuse to pay and I could be left with less? If I have in fact been paying too much tax how can I rectify that situation? This sounds like two giant fights that I'd rather not have (because they could make the next three months a living hell) Are you guys saying that I'm probably owed about w400 000 on taxes and 1 000 000 on pension? thats alot of money but it's less than my severance which I dont want to lose. Is this a big gamble or a sure thing? |
report him after you get everything owed. Make sure the NPS/tax man approaches him as you are flying out of Incheon |
A friend of mine found out his pension wasn't being paid (no account set up), and reported it to the pension office, as well as to the tax office (they were reporting his salary as 900,000 and pocketing the difference in tax money) and lack of health insurance.
As of last friday, he has all 3 now. As of yesterday, he was told he's being fired. |
How long has he been working there? |
A little over 4 months. Not long enough for the labor board to do anything, apparently. :/ |
Yep..another 2 months and he would have been gold. The pension office and tax office though might be interested in this hakwon cheating them...I'd file a report with them on my way out if I were him. |
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