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fosterman
Joined: 16 Nov 2011
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 Posted: Sat Feb 11, 2012 9:05 pm Post subject: how much does the school pay for your pension and medical? |
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How much does the school pay into the pension and medical?
I am wanting to negotiate a one time cash settlement with the school
but I want to know how much the school pays in a 12 month period so I can offer them a deal.
thanks.. |
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iggyb
Joined: 29 Oct 2003
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| Posted: Sat Feb 11, 2012 10:03 pm Post subject: |
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| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
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fosterman
Joined: 16 Nov 2011
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| Posted: Sat Feb 11, 2012 10:41 pm Post subject: |
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| iggyb wrote: |
| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
ok so on a basic 2.2 salary that's a little over 100.000 bucks a month.
so 1.2 a year. emmm
what about medical? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sat Feb 11, 2012 11:12 pm Post subject: |
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| fosterman wrote: |
| iggyb wrote: |
| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
ok so on a basic 2.2 salary that's a little over 100.000 bucks a month.
so 1.2 a year. emmm
what about medical? |
2.9% of your salary (matched by you of course).
You are also aware that:
i) both are required by law
ii) you cannot contract to break the law.
iii) the employer would have to be an idiot to agree to it
. . a) since if anything happens he would be left holding the bag and facing fines
OR
. . b) you are classed as a private contractor and he can do the same (avoid paying into it) without paying you for it.
. |
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fosterman
Joined: 16 Nov 2011
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| Posted: Sun Feb 12, 2012 2:06 am Post subject: |
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| ttompatz wrote: |
| fosterman wrote: |
| iggyb wrote: |
| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
ok so on a basic 2.2 salary that's a little over 100.000 bucks a month.
so 1.2 a year. emmm
what about medical? |
2.9% of your salary (matched by you of course).
You are also aware that:
i) both are required by law
ii) you cannot contract to break the law.
iii) the employer would have to be an idiot to agree to it
. . a) since if anything happens he would be left holding the bag and facing fines
OR
. . b) you are classed as a private contractor and he can do the same (avoid paying into it) without paying you for it.
. |
some of the afterschool jobs I have seen the recruiters are saying they give you an extra 200.000 a month compensation for medical and pension.
and once a long time ago a school director offered me 1.2 million for pension in one lump sum. I was trying to figure out how this actually saved him money, but I did, as he offered it to all his full time teachers.
we all said yes as it was added at the end of the year and of course we didn't have to pay 100.000 into it, but in theory he would of had to, but he chose to pay us at the end of the year because he said it benefits him.
so I am trying to work it again.
And regarding the medical I doubt 80% of the hakwons actually pay the medical contribution, they just probably cover your bill if you get sick, which really how many teachers get that sick.
I have read so many stories of schools not paying it.
I have my own insurance which is family insurance so I doubt want to be paying more. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Sun Feb 12, 2012 9:45 am Post subject: |
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| fosterman wrote: |
| ttompatz wrote: |
| fosterman wrote: |
| iggyb wrote: |
| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
ok so on a basic 2.2 salary that's a little over 100.000 bucks a month.
so 1.2 a year. emmm
what about medical? |
2.9% of your salary (matched by you of course).
You are also aware that:
i) both are required by law
ii) you cannot contract to break the law.
iii) the employer would have to be an idiot to agree to it
. . a) since if anything happens he would be left holding the bag and facing fines
OR
. . b) you are classed as a private contractor and he can do the same (avoid paying into it) without paying you for it.
. |
some of the afterschool jobs I have seen the recruiters are saying they give you an extra 200.000 a month compensation for medical and pension.
and once a long time ago a school director offered me 1.2 million for pension in one lump sum. I was trying to figure out how this actually saved him money, but I did, as he offered it to all his full time teachers.
we all said yes as it was added at the end of the year and of course we didn't have to pay 100.000 into it, but in theory he would of had to, but he chose to pay us at the end of the year because he said it benefits him.
so I am trying to work it again.
And regarding the medical I doubt 80% of the hakwons actually pay the medical contribution, they just probably cover your bill if you get sick, which really how many teachers get that sick.
I have read so many stories of schools not paying it.
I have my own insurance which is family insurance so I doubt want to be paying more. |
The majority of hogwans do pay the pension and health insurance as required. There are several of the big chains with a large number of teachers, however, that prefer to report their teachers as Independent Contractors.
Some smaller schools, such as yours apparently, like to operate in the underground economy as much as possible. A school can save a lot of money by keeping you off the books. So, they are willing to pay you the employer's portion of the pension and pay for an alternative health plan. As a teacher, you can come out ahead in such an illegal scheme - but it's still illegal, so getting caught is a risk I wouldn't want to take.
The school saves money because they can avoid reporting the income of the teacher to any govenment taxing agency, which means that you don't exist, which means that they can hide an amount of revenue equivalent to the revenue that your work supports - they can hide the equivalent of all the tuition paid by all of your students (they have to hide cash, not credit and debit card payments).
By being able to underreport their own revenues and the income on those revenues, the tax savings is far larger than the tiny bit represented by the employer's share of the employee's pension. |
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fezmond
Joined: 27 Oct 2008
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| Posted: Sun Feb 12, 2012 3:02 pm Post subject: |
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| ontheway wrote: |
| fosterman wrote: |
| ttompatz wrote: |
| fosterman wrote: |
| iggyb wrote: |
| Pension: You pay 4.5% of your salary and the school adds 4.5% for a total of 9% given to the government. |
ok so on a basic 2.2 salary that's a little over 100.000 bucks a month.
so 1.2 a year. emmm
what about medical? |
2.9% of your salary (matched by you of course).
You are also aware that:
i) both are required by law
ii) you cannot contract to break the law.
iii) the employer would have to be an idiot to agree to it
. . a) since if anything happens he would be left holding the bag and facing fines
OR
. . b) you are classed as a private contractor and he can do the same (avoid paying into it) without paying you for it.
. |
some of the afterschool jobs I have seen the recruiters are saying they give you an extra 200.000 a month compensation for medical and pension.
and once a long time ago a school director offered me 1.2 million for pension in one lump sum. I was trying to figure out how this actually saved him money, but I did, as he offered it to all his full time teachers.
we all said yes as it was added at the end of the year and of course we didn't have to pay 100.000 into it, but in theory he would of had to, but he chose to pay us at the end of the year because he said it benefits him.
so I am trying to work it again.
And regarding the medical I doubt 80% of the hakwons actually pay the medical contribution, they just probably cover your bill if you get sick, which really how many teachers get that sick.
I have read so many stories of schools not paying it.
I have my own insurance which is family insurance so I doubt want to be paying more. |
The majority of hogwans do pay the pension and health insurance as required. There are several of the big chains with a large number of teachers, however, that prefer to report their teachers as Independent Contractors.
Some smaller schools, such as yours apparently, like to operate in the underground economy as much as possible. A school can save a lot of money by keeping you off the books. So, they are willing to pay you the employer's portion of the pension and pay for an alternative health plan. As a teacher, you can come out ahead in such an illegal scheme - but it's still illegal, so getting caught is a risk I wouldn't want to take.
The school saves money because they can avoid reporting the income of the teacher to any govenment taxing agency, which means that you don't exist, which means that they can hide an amount of revenue equivalent to the revenue that your work supports - they can hide the equivalent of all the tuition paid by all of your students (they have to hide cash, not credit and debit card payments).
By being able to underreport their own revenues and the income on those revenues, the tax savings is far larger than the tiny bit represented by the employer's share of the employee's pension. |
i've found out my school underreported my income by 1.6m (700k rather than the real 2.3m). if i do go the pension and tax offices i will take a big hit in back payments.
does the school match me on the tax or would they take a bigger hit on taxes? i'd like to see them get fined to high heaven too. if this all falls under fraud, would the police get involved? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun Feb 12, 2012 3:55 pm Post subject: |
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| fezmond wrote: |
i've found out my school underreported my income by 1.6m (700k rather than the real 2.3m). if i do go the pension and tax offices i will take a big hit in back payments.
does the school match me on the tax or would they take a bigger hit on taxes? i'd like to see them get fined to high heaven too. if this all falls under fraud, would the police get involved? |
Your tax hit may be substantial (45k won for every month you were employed) plus penalties for non-payment. Contact the foreign tax advocate for specifics ( http://www.nts.go.kr/eng ).
Your boss would face an audit, fines, taxes (on his unreported income) and penalties.
While it is under investigation they may take your passport (preventing you from running) until the matter is settled and criminal liability is determined.
. |
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wallythewhale
Joined: 12 Mar 2009
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| Posted: Sun Feb 12, 2012 4:09 pm Post subject: |
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| Do the right thing... |
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