Korean Job Discussion Forums

[ampersandman]

First paycheck at my new job last week.

Two potential items of bs.

1). 11,000 won deducted for "unemployment insurance"! My boss even told me she doesn't understand why she has to make me pay for such a thing, as I'm not a Korean citizen, just an E-2 visa holder.

Do ANY of you have unemployment insurance as a deduction? I've never had this deduction at the other jobs I've had in Korea. I'm guessing my boss's tax accountant gave her some ridiculous misinformation, right?

Please, advice on how to persuade her to stop doing this BS deduction. I wouldn't have any idea about how to prove to her that she's wrong.

Also, 2).

Income tax deduction seems too high.

At my last job, salary averaged about 2.4 every month, and I would pay about 30,000 income tax, plus 3,000 for "city taxes" and about 4,000 for something called "long-term care insurance", whatever that was (sounds like bs too, but small enough that I bother about it).

At my new job the salary is 1.85 /month (due to very short hours, if you're wondering) but the deduction labelled "income tax" is 61,000. Wtf? Why am I now paying twice as much income tax as I was a couple months ago, if my salary is now 550,000 lower than it was at that time?

I'd be interested to hear how much tax other E-2 workers are paying relative to salary.

Thanks in advance.

[Fox]

[ampersandman]

[Fox]

[ampersandman]

My contract doesn't say anything specific about tax rates. No I'm not an independent contractor, how could I be on an E-2 visa which is sponsored by my employer.

Ok, how much income tax are we supposed to pay?

[Fox]

Check for yourself: http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

[ampersandman]

[KimchiNinja]

[Porksta]

The only deductions you should have are:

Health insurance
Long term health insurance (usually under 10,000)
Pension
Income tax (around 2% of your salary)
Income tax 2 (10% of Income tax)

Anything else and they are probably taking out too much money from your pay.

[ttompatz]

To clarify the issue a bit:

Those "employees" who are falsely listed as "independent contractors" have a fixed rate of 3.3% deducted.

Employees who are listed as employees pay according to the marginal income tables (the more you make the higher the percentage that you pay).
An employee earning less than 2 million should pay less than 20k won per month.

In BOTH cases you are required to file a tax return each year.

The employee is not likely to see any refund from their taxes.
The IC is, if they file appropriately, likely to get most of all of it back.
The problem is that most employees who are listed as IC's file as employees and effectively lose it all.

As a foreigner you are exempt from the "employment insurance" since you cannot collect it. Contact the local labor office for clarification. http://www.moel.go.kr/ .

There should also be contributions for NHIC (medical) and NPS (pension). If these are not there then you are being classed (illegally) by your employer as a subcontractor and will continue to be screwed for the rest of your contract. (bend over, lube not an option)

It is a fight it you cannot win --> If you win (or even file a complaint) you get fired. You lose.
IF you don't complain you continue to get screwed. You lose.
Lose-lose. pick one,

.

[ampersandman]

[KimchiNinja]

[Feebie]

[Weigookin74]

Public school - local ed office does the taxes. I always have to top it up a bit every February. But, fed income taxes, prov income taxes, medical insurance, and pension payment always seem to come around the 9 or 10% range of my pay. Just slightly under 10 I guess. Think I paid a bit less when I first got here several years ago as some things (like housing) weren't taxed and maybe only 70% of your salary was taxed.

Still lower than Canada for my income bracket. If you factored in higher living cost in the Maritimes (would be more Toronto, Calgary, etc), higher taxes, overall life expenses, then my salary here (though lower than this amount) would be equivelent to the mid to upper 50's K per year. (After taxes and other higher expenses are factored in.) But, I make more than 2.1 million won.

Anyways, if you only have 60,000 deducted from a 2.1 or 2.2 million salary, something isn't adding up. Check to make sure your pension and medical insurance is being paid.

As I always say, never do the independant contractor unless you make 31,000 an hour or higher and are gauranteed a minimum number of hours. If you have experience and are any good, you should demand much more than this of course. If you don't get these conditions met, walk away. There's always someone dumb who doesn't do their homework that will take those offers.

[Weigookin74]

For the IC I suggest these wages so that you can pay your own taxes and all your own pension and health contributions along with what would be your employers. If you're here long term, the NPS may come after you for unpaid premiums into the future so you really don't want to have to cough up those fees.