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dillyq
Joined: 29 Mar 2013
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 Posted: Tue Apr 02, 2013 6:49 am Post subject: hagwon boss not declaring tax |
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Just moved cities and discovered I'm not on the Korean computerised tax system. There is no record of me or of the tax my hagwon boss took from my monthly pay for 11 months : 1,550,000KRW for tax over the period. I now have a new (non-hagwon) job and don't know what to do...feel angry and concerned the tax folk will want this tax from me now I am on the system. Needless to say I'm probably not the first to have this experience.
Previous boss had 'poor' English and didn't understand I wanted a record of pay and deduction details but I do have contract details and record of deposits (minus tax) into my bank account.
Any advice greatly appreciated. Thanks |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Apr 02, 2013 9:30 am Post subject: Re: hagwon boss not declaring tax |
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| dillyq wrote: |
Just moved cities and discovered I'm not on the Korean computerised tax system. There is no record of me or of the tax my hagwon boss took from my monthly pay for 11 months : 1,550,000KRW for tax over the period. I now have a new (non-hagwon) job and don't know what to do...feel angry and concerned the tax folk will want this tax from me now I am on the system. Needless to say I'm probably not the first to have this experience.
Previous boss had 'poor' English and didn't understand I wanted a record of pay and deduction details but I do have contract details and record of deposits (minus tax) into my bank account.
Any advice greatly appreciated. Thanks |
You didn't say how much you were making or what percentage this total amount deducted represents. Was the 1.55 million won the total of all deductions or were there other amounts? Without a statement of earnings with a breakdown of deductions there is no way to know what this total represents.
For others who may be in the same boat: You can and should demand a payroll statement of earnings and deductions with each pay period. It is legally required. If your boss doesn't prepare one for you, you can prepare your own with the appropriate amounts and present a copy to your boss showing what you should be getting and where the money should be going. Then ask why there are any discrepancies.
(I had one boss long ago who was a teacher, but just clueless about management and financial matters. So I prepared my own monthly statements. The boss paid exactly what I calculated and paid all amounts due to the required offices.)
Never work without a monthly earnings and deductions statement.
We can only speculate without knowing your income that you should have had approximately 4.5% deducted for National Pension, 3% for Health Ins and less than 2% for Income taxes.
You can and should check with the National Pension office to see if you are registered and if any payments were made.
Did you get anything to indicate you were enrolled with the National Health Ins Plan? You can and should check with them as well.
Income taxes only have to be paid in once per year, however after 11 months your boss has likely crossed the setlement date during your period of employment and should have reported and paid.
So, assuming you find that nothing was reported or paid anywhere, you should go to all of these offices, plus the labor office and report your employer. Take your contract and bank book showing the payments received.
Your employer should be held accountable for the deductions he made. It sounds like - speculating - that he withheld the money and kept it. But we don't know that. It's up to you to check and report him. |
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Whistleblower
Joined: 03 Feb 2007
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| Posted: Tue Apr 02, 2013 2:44 pm Post subject: |
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| I am guessing that he didn't contribute to Pension Contributions or Health Insurance. Get down to the Labor Board, Pension Office, etc armed with all your documents. |
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dillyq
Joined: 29 Mar 2013
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| Posted: Tue Apr 02, 2013 3:58 pm Post subject: hagwon boss not declaring tax |
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Thanks for advice. FYI reductions were from monthly income of 2.100,000W : 5% income tax, 3% health insurance (boss also paid 3%), 4.5% pension (boss paid 4.5%). Sorry my previous figure for income tax should have read 1.155,000W.
I'll contact relevant pension and health offices and double check before making next move. Thanks again |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Wed Apr 03, 2013 4:35 am Post subject: Re: hagwon boss not declaring tax |
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| dillyq wrote: |
Thanks for advice. FYI reductions were from monthly income of 2.100,000W : 5% income tax, 3% health insurance (boss also paid 3%), 4.5% pension (boss paid 4.5%). Sorry my previous figure for income tax should have read 1.155,000W.
I'll contact relevant pension and health offices and double check before making next move. Thanks again |
Sorry to hear about your situation.
I have a similar problem right now. My boss deducted the income tax, health and pension, but only reported my monthly and yearly income by about half.
Which basically meant he pocketed a lot of my deduction. I told this to the Labor Ministry (I had unpaid wages at the same time and ask them to investigate the tax deductions) however they told me to go to the tax/pension office to complain about that part of my claim. I went to the pension office to inquire about my 90,000 per month pension deduction there, and showed them only 54,000 was remitted, and they told me under-reporting is normal, go to the labor office and get the part of the contribution he pocketed. I thought this opinion was dumb, so I went back with a Korean friend and he convinced the pension office to inform my boss to submit new paperwork to accurately report my income. They also referred this situation to the enforcement officer. I can call the enforcement officer next week they told me to call the enforcement officer and check the status of my "adjustment." Fortunately I have some paystubs and my contract which states what he deducted, and bank records, so he will be eventually have to remit my tax liability and his employer match.
I hope you have better luck, but Korean bureaucrats are quite stubborn. It took me months to get to the point where the enforcement officer would bother with this. They will probably try either do nothing, say corruption is normal and ignore it or call your boss for a side-deal, kick you to some other office, usually the labor ministry (because its about deductions), and then the labor ministry will try to send you back to the tax offices, saying tax/pension stuff is not in their jurisdiction. All of this happened to me. Go with a Korean friend knowledgeable about law so these officials don't jerk you around. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Wed Apr 03, 2013 4:35 pm Post subject: |
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Your boss has done you a huge favour. I'm going to post this on a separate thread but the National Tax Service pays rewards for reporting non payment of taxes.
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| It plans to reward those who report tax fraud with up to 1 billion won, up from the current 100 million won. |
Source: http://koreatimes.co.kr/www/news/biz/2013/04/123_133269.html
This is a great way for many hagwon employees to supplement their salaries.
Good luck. |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Wed Apr 03, 2013 9:17 pm Post subject: |
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| big_fella1 wrote: |
Your boss has done you a huge favour. I'm going to post this on a separate thread but the National Tax Service pays rewards for reporting non payment of taxes.
| Quote: |
| It plans to reward those who report tax fraud with up to 1 billion won, up from the current 100 million won. |
Source: http://koreatimes.co.kr/www/news/biz/2013/04/123_133269.html
This is a great way for many hagwon employees to supplement their salaries.
Good luck. |
Unfortunately, this won't do anything.
The fines and penalties on the books NOW are enough to bankrupt most Hagwons. Increasing it won't do anything, WHAT THEY NEED TO DO IS ENFORCE THE LAWS ON THE BOOKS.
Oh yea, and I never heard of anyone getting a reward for reporting an English Hagwon. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Wed Apr 03, 2013 11:10 pm Post subject: |
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| Wildbore wrote: |
| big_fella1 wrote: |
Your boss has done you a huge favour. I'm going to post this on a separate thread but the National Tax Service pays rewards for reporting non payment of taxes.
| Quote: |
| It plans to reward those who report tax fraud with up to 1 billion won, up from the current 100 million won. |
Source: http://koreatimes.co.kr/www/news/biz/2013/04/123_133269.html
This is a great way for many hagwon employees to supplement their salaries.
Good luck. |
Unfortunately, this won't do anything.
The fines and penalties on the books NOW are enough to bankrupt most Hagwons. Increasing it won't do anything, WHAT THEY NEED TO DO IS ENFORCE THE LAWS ON THE BOOKS.
Oh yea, and I never heard of anyone getting a reward for reporting an English Hagwon. |
Feel free to ignore this post, complaining on Dave's won't do anything but complaining to the appropriate government department and following it through just might. |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Thu Apr 04, 2013 6:23 am Post subject: |
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| big_fella1 wrote: |
| Wildbore wrote: |
| big_fella1 wrote: |
Your boss has done you a huge favour. I'm going to post this on a separate thread but the National Tax Service pays rewards for reporting non payment of taxes.
| Quote: |
| It plans to reward those who report tax fraud with up to 1 billion won, up from the current 100 million won. |
Source: http://koreatimes.co.kr/www/news/biz/2013/04/123_133269.html
This is a great way for many hagwon employees to supplement their salaries.
Good luck. |
Unfortunately, this won't do anything.
The fines and penalties on the books NOW are enough to bankrupt most Hagwons. Increasing it won't do anything, WHAT THEY NEED TO DO IS ENFORCE THE LAWS ON THE BOOKS.
Oh yea, and I never heard of anyone getting a reward for reporting an English Hagwon. |
Feel free to ignore this post, complaining on Dave's won't do anything but complaining to the appropriate government department and following it through just might. |
Have you actually dealt with unpaid wages, embezzled pension, and pocketed taxes? I've done or am dealing with the above. I've spent literally 20+ hours (on buses, at hearings, talking to some dumb Korean bureaucrat, copying and making documents, etc.) dealing with these issues and lets just say I never thought I'd miss the IRS or CRA. The tax, pension, and labor people in Ulsan are complete jokes. One of these offices actually told me and my Korean friend "its too difficult to investigate." Can't say I did a bigger facepalm after that one.
Most of these officials won't even know or care about the increased penalties. They barely enforce the current law as it is. |
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dillyq
Joined: 29 Mar 2013
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| Posted: Fri Apr 05, 2013 3:13 pm Post subject: hagwon boss not declaring tax |
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| Just an update as all info has been very helpful. My ex-boss has told me she pays tax once a year, but that it will be in May 2013 ( I started March 2012) so that is why there is no record of me. She has said the tax office will send me a record after tax has been filed. Subsequent to my enquiries she has told me she's very upset I've accused her of stealing and very angry I have behaved in 'such a rude manner'. My empathy to 'Wildbore', as just a week of dealing with this has been draining. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Fri Apr 05, 2013 4:24 pm Post subject: |
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What about your pension and health insurance?
A fraudsters upset that you accused them of stealing classic hagwon move. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Sat Apr 06, 2013 3:59 pm Post subject: Re: hagwon boss not declaring tax |
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Paying those things once a year is highly unusual (and most certainly not encouraged), although not impossible.
But...
You realize that 1.15 million accumulated over the course of a year doesn't even come close to covering the percentages you listed, right? Your pension contributions alone should add up to about that. |
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