Korean Job Discussion Forums

[plato's republic]

Here's the situation. I've already received three monthly paychecks and so far not one won has been taken out of my monthly pay for tax/pension payments. Now in a way, this is a good thing, but I'm worried that the Korean tax office may soon contact me or my school and ask why I haven't been paying my dues. Another thing that worries me is that if I decide to stay on in Korea after my first contract is up, will I have any problems in securing an E2 work visa if immigration find out that I didn't pay all my taxes. What's the deal with such an issue? Am I responsible for paying tax by myself or should my school arrange this by automatically deducting money from my monthly paycheck?
Any help would be much appreciated.

[Ya-ta Boy]

Yes, the school should be automatically deducting taxes and pension from your pay before you get it.

Plan #1: Ask your boss about this.

Plan #2: If you have a Korean friend, ask him/her to call the local tax office and pension office and ask for guidance. THEY will no doubt make a call to your boss and get him on the straight and narrow.

You didn't mention anything about health insurance. You are supposed to be getting that as well. If you want it (W35,000/month) add them to the list as well.

I don't know about what would happen should you want to stay a second year, but my conservative guess would be that you would have major problems.

PS: For three months, the total in taxes, pension and health insurance is not too big. But get this taken care of asap because it will mount up fast.

[pegpig]

One Korean gov't moron doesn't know/care what the next Korean gov't moron is doing. During my 3rd year my boss did not pay a single dime in taxes, medical, etc. nada. I had a valid e2 and I also added an f2 mid-way thru that deal. I had no problems getting another e2 after.

Obviously, I wouldn't recommend letting them get away with it. This meant an extra 100k/per month in my pocket at the time. But, I wouldn't do it now tho.

Plus, you're also supposed to pay pension, so I definitely would get after them on it. They'll probably plead ignorance and you'll have to push, push, push....

[crazykiwi]

haha, i just figured out my boss is doing the exact same thing. the thing is i get x amount of salary, i am to pay half my rent of 200,000 a month (my choice for a big apartment) and he was to pay the other half. now funnily enough, my "deductions" are exactly 200,000! i thought with my first paycheck, i would let it slide, second pay check, not oo worried, now with the third one, i asked him for a pay slip!

wan jung nim (not the "money man)"wh-wh-why do you need a pay slip?i have no idea how to do one, can you give me a template so i can copy that and write one for you?"

"the bank needs it so i can prove i earnt the cash. why is there a problem? is the boss not paying my taxes?"

wjn " errrrrr shhhhhs ahhhhhhh i dont think so"

"now is this going to be a problem for me? im not f'n impressed here. for one, my pay was late by a week, and now i find NONE of my deductions have been correct? i want to speak with him NOW!"

wjn "errr his handphone is broken!"

"god, you are still spewing me bullshiza after all this!"


anyway, i am to see my big boss today soemtime. my wjn has admitted finally that no, he now doesnt trust the bboss, contrary to what he was harping on at me a few weeks ago, when i vented my distrust! so hopefully all works out and it won't end with me smacking my boss in the face and me ending up in jail! or running away like a *beep*!

[diablo3]

Giving my two bob,

I think technically you have nothing to worry about if you have a contract which states how much tax you should pay. When you go back to your original country, how are they going to find out about anything?

Showing your contract which outlines your tax to pay and proof you worked in your hagwon is enough.

Showing your payslips (if you have any) is another way to show you worked in Korea. However, if you want to transfer money to your original country, it is best to show your payslips to the bank of your choice you wish to transfer money from.

[peppermint]

The info you need for pension, tax and medical is here, complete with phone numbers for english speakers.

[plato's republic]

Diablo3,

So what you're saying is that I have to take payslips to my bank here in Korea in order to transfer money to my home bank account? Did I understand that correctly? I don't get payslips from my school, the money is just deposited every month into my account.

Peppermint,

Thanks for the info. but I'm having difficulty accessing the link for the tax office website. Anyway, I'll have to thrash it out with the director and try to come to some sort of arrangement.
I just don't want to end up with a whopping tax/pension bill at the end of my contract and/or be denied the chance to get another E2 work visa in the future.

[diablo3]

Well,
any evidence that your money is not funny money. Your contract, passport, and proof of employment could be enough. The contract will show how much money you earn. Banks usually just want to ensure you do not earn more than what your contract states. They will probably want to see the bank account where the money goes in also.

If you transfer under $10,000 USD, then you may have not much to worry about.

As for your native country, you can simply go by the contract regarding your tax.

For something extra, you can ask your employer for a ��õ¡���� and ��õ¡�������� because these documents will show everything (pay, tax, etx), but I am guessing these documents will be more difficult for you to get compared to getting payslips.

[Derrek]

Just remember that if you are from a country such as Australia, you are not eligible to get back any of your pension. So if you can avoid paying in, then all the better!

My first employer never paid into it, and I didn't know a thing about it my first year. Neither did my second employer (was there for 6 months). Still didn't understand the pension system back then, so I wasn't on it.

If you are Aussie, for example, you would rather avoid paying into pension, since you'd just be throwing your money away. If you are from the US, Canada, or some other country that has a pension agreement with Korea, then DEFINATELY get on it, because the employer must also pay in as much as you.

That's a lot of your money, plus just as much in "free money" from your employer in the end.

[bourquetheman]

I was in the exact situation you were in at my high school. After working at university I just assumed that the high school knew enough to take out the necessary deductions, but alas no that wasn't the case. Stupid me didn't think to ask them why, but at the end of February (I think that is when tax season is, anyway whatever month it is) I was shocked to learn that they said they made a mistake and would have to take out the back tax that I didn't pay as well as pension! I was big time pissed off and so was my wife. They should have been on the ball to take out the necessary deductions. The only good thing was that we had a bunch of receipts (credit card, medical receipts, etc.) that we claimed back so we ended up paying 400 000 won or so. Definitely check with your school.

[pegpig]

Unless things have changed in the last couple of years, you don't need anything other than your passport and the routing info of your bank to send money home..

[diablo3]

plato,
I think everything is in the clear for you to transfer money.

So, the only thing to be concerned about is then any backpayment of taxes due to the hagwon's inability/laziness/intentional deceipt/whatever to deduct your tax and give it to the government. Be ready for for it if it happens.

Something similar nearly happened to me once, not with tax but with insurance.

[crazykiwi]

I think it depends on the bank teller, as to weather you can prove how much you are earning. Well it seems that way to me when i go in. I went in with my bank book last time no probs, but they then rung my boss telling them i need a pay slip next time. You could also write a sheet with the month and amount you earned, plus a stamp and signiture from yor boss and take that in. worked for me last year, no worries! also they told me if you send less than 1000 us dollars, they dont need prove of earnings.