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Income tax taken in one lump

 
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mountaingirl



Joined: 07 Feb 2004

PostPosted: Thu May 26, 2005 1:21 pm    Post subject: Income tax taken in one lump Reply with quote

My contract finishes this week. My director has never taken any tax off- but has decided that now he is taking 700,000 off to pay back taxes! He can't offer me any assurance that this money is even going to the tax office! Grrrrrrrrrrrrrr
Any advice??
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Ya-ta Boy



Joined: 16 Jan 2003
Location: Established in 1994

PostPosted: Thu May 26, 2005 2:04 pm    Post subject: Reply with quote

Maybe a discrete call to the tax office in which you mention the school name, just to make sure everything is OK?
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hellofaniceguy



Joined: 10 Jan 2003
Location: On your computer screen!

PostPosted: Thu May 26, 2005 2:45 pm    Post subject: Reply with quote

700,000 Won...something sounds wrong.
Unless you have been working at this school for over a year!
Tax rate is around 3.55% based on around 2 million Won per month salary. Do the math. that's around what.....40 thousand Won a month. 40 times 12 months.....480 thousand Won for 12 months. Ask the tax office.
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Draven



Joined: 03 Feb 2003

PostPosted: Thu May 26, 2005 3:03 pm    Post subject: Reply with quote

My school did that last year. They didn't withhold any tax until the 9th month of the contract, then they took all 9 months worth, which just happened to be in December, two weeks before the 25th. Nice Christmas bonus. Even still, though, the tax bill was something like 260,000 for the 9 months. Your amount seems too high.
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Grotto



Joined: 21 Mar 2004

PostPosted: Thu May 26, 2005 3:21 pm    Post subject: Reply with quote

tax per month off of a 2 mil salary is 28,000 won

12X28,000= 336,000+ change
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diablo3



Joined: 11 Sep 2004

PostPosted: Thu May 26, 2005 4:27 pm    Post subject: Reply with quote

One way to feel relieved that you are paying tax is through these 2 documents, and ask your boss for them, he/she knows what they are:

��õ¡����
��õ¡��������

They show everything: tax, pay, etc.
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Ajarn Miguk



Joined: 22 Jan 2003
Location: TDY As Assigned

PostPosted: Thu May 26, 2005 4:58 pm    Post subject: They Show Nothing If Never Provided Reply with quote

diablo3 wrote:
One way to feel relieved that you are paying tax is through these 2 documents, and ask your boss for them, he/she knows what they are:

��õ¡����
��õ¡��������

They show everything: tax, pay, etc.


This is an employer who has never taken out tax for a year, now seems to be deducting an outrageously high amount lump sum for back taxes, and you expect him or her to willingly provide ��õ¡���� and ��õ¡�������� to a soon departing employee? Rolling Eyes
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diablo3



Joined: 11 Sep 2004

PostPosted: Thu May 26, 2005 5:07 pm    Post subject: Reply with quote

Nope, they never usually willingly provide such basic documents which workers are entitled to. Bigger companies will provide you this in 1 minute as they have a HR department, but the little hagwon will always struggle with this area and never help themselves preparing for such things.

I also never got one myself, for an excuse I will never understand.
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crazylemongirl



Joined: 23 Mar 2003
Location: almost there...

PostPosted: Thu May 26, 2005 5:12 pm    Post subject: Reply with quote

This deduction has nothing to do with tax and everything to do with the director deciding that's what he's going to pay her and looking for an exucuse out.

I'm sure after she's fought him on the tax, he'll ask for a portion to cover any bills that she might leave, etc.

Basically the director knows that he/she has got you by the balls in terms of time so will keep on making up b.s excuses as to why you'll be leaving 700k lighter.

Perhaps get a (perferably older male) korean friend to have a go at your director. After that look into the labour board.
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the eye



Joined: 29 Jan 2004

PostPosted: Thu May 26, 2005 11:03 pm    Post subject: Reply with quote

* EDIT *

true.
your tax rate is listed here:
http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp
Grotto wrote:

tax per month off of a 2 mil salary is 28,000 won

12X28,000= 336,000+ change


this is true.
because the employer has withheld the tax, there is a much lower rate.

severance pay is taxed differently:
http://www.efl-law.com/kr.tax.sp.htm
if your severance is 2million, you should pay 153,000

there is also a very small Residence tax to be taken off.(1/10th of income tax)


as the others have said, he is still probably not actually paying your tax to the tax office.
check it out.

you will need the owner's name AND the business registration number (seen on the permit that is hanging on the wall near the front desk)

take these things to the tax office:
http://www.nts.go.kr/eng/default.html

don't let this go.
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turtlepi1



Joined: 15 Jun 2004
Location: Abu Dhabi, UAE

PostPosted: Thu May 26, 2005 11:19 pm    Post subject: Reply with quote

If they didn't take tax, then they likely didn't take pension.
If you are from a country that gets pension back and the school has more than (5?) "full-time" employees you may want to make a stink about pension not being paid. Sure you will have to come up with the contributions in a lump sum, but then your employer will have to match it and you will get the bundle of their funds and yours at the end of the contract.

Be a bit careful though..remember you also have the year-end bonus and airfare they have yet to screw you out of. Smile
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Pyongshin Sangja



Joined: 20 Apr 2003
Location: I love baby!

PostPosted: Fri May 27, 2005 1:11 am    Post subject: Reply with quote

Quote:
Tax rate is around 3.55% based on around 2 million Won per month salary. Do the math. that's around what.....40 thousand Won a month. 40 times 12 months.....480 thousand Won for 12 months.


3.55% of 1 mill is......35,500 won

times two = W71,000 times twelve = W852,000.

If that's actually the rate, you're getting a deal at 700,000.

If.
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