|
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 |
nachoinkorea
Joined: 25 Mar 2009
Location: Seoul
|
 Posted: Thu Sep 08, 2011 8:09 pm Post subject: |
 |
|
What happened to Mr. Kalpoun and his girlfriend was horrifically tragic. This is a perfect example of why you are should know what your health insurance situation is. Do not rely on your employer saying "Oh, yeah you are insured." If you have not received your NHIC card then you don't have it.
If you are an independent contractor in Korea you can still get national health insurance in your name, this process is fairly straightforward (but expect the usual bureaucracy when you first apply). I currently have about 50 staff under me working as independent contractors and as long as they have been in the country for 3 months all of them have national health insurance.
Anyone who is legally working in South Korea can apply for national health insurance in their name if they are taxed as an "irregular" employee. If you are taxed as a "regular" employee then your employer should be providing it for you. |
|
| Back to top |
|
 |
wooden nickels
Joined: 23 May 2010
|
| Posted: Fri Sep 09, 2011 7:26 am Post subject: |
|
|
Having a business that sponsors E2-VISAs for the past 6 years, ...
the Tax Office, the National Pension Office and National Health Care, have all stated that as being the sponsor of an E2, at least for the USA and Canada that I have asked about, these persons are not Independent Contractors.
This is what the offices in my area have told me. I'm not saying they are wrong or right. I'm just saying that they stated the E2s aren't ICs by law, and that they should be registered under tax, pension and health care, by law. |
|
| Back to top |
|
|
ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
|
| Posted: Fri Sep 09, 2011 8:18 am Post subject: |
|
|
| wooden nickels wrote: |
Having a business that sponsors E2-VISAs for the past 6 years, ...
the Tax Office, the National Pension Office and National Health Care, have all stated that as being the sponsor of an E2, at least for the USA and Canada that I have asked about, these persons are not Independent Contractors.
This is what the offices in my area have told me. I'm not saying they are wrong or right. I'm just saying that they stated the E2s aren't ICs by law, and that they should be registered under tax, pension and health care, by law. |
Absolutely believable.
Audits of IRS performance have shown that when responding to taxpayer questions, the IRS gives out completely or partially incorrect information more than half the time.
*****
Personally, I would not recommend IC status for most teachers coming to Korea. But, it is a valuable option for some who use it to make far more money by being real independent contractors and working multiple contracts. An E2 teacher can make more as an IC, although the best arrangement could be to be an employee with your sponsor and primary school and have additional legal IC positions on the side. It should remain a legal option. Koreans use it, F-visa teachers use it, and E2s should retain the option. However, I believe that working conditions should be taken into account more than they are at present to determine if the IC status is properly applied.
Businesses should have clear standards to meet that are clear to all, and contracts should be written honestly and clearly. A teacher should have the legal option to knowingly choose and sign a contract as an IC, with the conditions clearly spelled out and the ramifications explained regarding Health Ins, Pension, Severance, etc.
There is no question that many schools are scamming teachers with the IC status. But it is a legal status for E2 visa holders, and we can help teachers more by helping them identify and avoid the bad IC situations than by giving false security in the false notion that such contracts are illegal per se and therefore the nanny state will somehow protect them.
*****
IC status has to do with your contract and your working conditions. Independent contractors have to be treated quite a bit differently than employees.
There are no absolute conditions, however the following examples make a big difference between an employee and an independent contractor at a school:
Different: There should be major differences in the conditions of employees vs. contractors.
Most important: The contract must clearly represent that the position is not for full time regular employment and somehow imply that it is an independent contractor position. The best will clearly state this fact and make clear the benefits that will be paid and will NOT be paid and that the contractor must provide for him or herself.
If the contract offers National Health insurance or pension or uses the word "employee" to describe the worker, then the worker is likely an employee.
Housing: If housing or an allowance is provided this makes the worker more likely to be an employee.
Salary: Monthly or weekly salaries are for employees. Contractors should be hourly or on a fee for a project for a specific period or some other alternative.
Location: This is not relevant for schools since students must be taught in the school, just as a plumber must fix the plumbing where it is located. Further, since E2 visa holders must append locations on their ARC, the locations must by law be fixed, so this is not a relevant factor.
Number of hours and length of service: As the number of hours worked increase toward the 30 teaching hours considered full time, the more the worker looks like an employee. In addition, short term contracts look more like ICs.
Times classes are scheduled: An employee will have classes scheduled throughout the block(s) of time the school is open as needed by the school. Students, of course, must be taught at times when they can attend, but a contractor will have some say and will either contract to provide services according to a negotiated schedule or if the schedule is left open, should be able to refuse classes that do not fit in his/her schedule.
Outside work: Teachers who depend entirely on one job and who are not allowed to seek other jobs are more likely to be considered employees. |
|
| Back to top |
|
|
escarole
Joined: 06 Nov 2009
|
| Posted: Tue Sep 27, 2011 11:02 pm Post subject: |
|
|
Two questions:
1) I've gathered from this thread that the 3.3% tax rate is for "irregular employees", meaning independent contractors. What should the tax rate be, or what is the most common tax rate, for regular employees? Specifically I'm wondering about the most typical case E-2 visa holders.
2) Can anyone provide the pertinent legal terms, in Korean, for "irregular employee" and "regular employee"? I'm asking, if I were to look at the Korean law, what terms would I find naming these employees? I'm willing to try and look at the Korean law myself and figure it out, if anyone can point me to it.
Thanks. |
|
| 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
