Korean Job Discussion Forums

annabella · Joined: 05 Jan 2006 Location: Busan

I'm 9 months into my contract, and have agreed to stay for a further 6 months next year. My boss has agreed to raise my salary to 2m a month (for 100 hours, I only work 3-8pm), overtime has increased to 25,000w an hour, and he will give me 750,000w at the end of the 6 months as airfare allowance (which practically pays for a London/Seoul return so that's fine). I'm happy at my school and would like to stay, rather than chancing it with another hagwon.

My dilemma, however, is this.

I've been paying 3.3% tax, which on an original salary of 1.8, should only have been 1.1088% - taken from the NTS website (yes, I know I should've checked this last year). This means that over the course of the year, I have overpaid 473,280w (39,440w per month).

Can I do anything about it? Tell him I'll go to the local tax office to ask about claiming it back to guage his reaction? Tell him I want it paid back to me or I won't stay? No second contract has been signed yet, but I have already pointed out that I'm amending the tax rate, and that I'm saving him a load of cash in not having to pay recruiters fees, severance etc.

I called the tax office last week to see if I could check that my payments were being made (and how much), but they just told me that I would have to wait for the end-of-year forms, or something along those lines. Surely there must be some way I can check what has been paid on my behalf so I have some facts to throw back at my boss?

Constructive ideas and advice appreciated!

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

annabella · Joined: 05 Jan 2006 Location: Busan

Thanks. I was thinking along those lines as well, about whether complaining retrospectively about tax payments would work, or even be worth while. I would like to stay at this school as I am happy here, it's easy going and I get none of the b-s that a lot of my friends seem to get.

Along with pointing out what my new tax rate will be, I've also mentioned the overpayment for this year, and asked what I need to do to get it back (take my ARC and employment details to the local tax office for example). It may well backfire, but I'm saving him a few million in staying on so you'd think that reimbursing my extra 'tax' would be ok (but then again, this is Korea so we shall see).

Does anyone know how I can check what exactly has been paid on my behalf?

Grotto · Joined: 21 Mar 2004

id say fill out a tax return...if your boss has been giving to the tax office you are in for a nice return!

annabella · Joined: 05 Jan 2006 Location: Busan

Sounds promising, but how? Do I just contact my local tax office amd ask for the relevant paper work, or is this something my boss has to do on my behalf?

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

Son Deureo! · Joined: 30 Apr 2003

The total amount of the discrepancy here is about W40,000 per month, or W500,000 per year. It adds up.

If you're happy about the situation overall and can live with getting nickel and dimed, re-sign. Afterwards, however, you may want to tell your boss that you need to get documentation from the Korean tax office for the taxes you have been paying in Korea to file with your home country's tax office. Don't frame it as a threat to your boss, but rather that it is something that you need to take care of in order to be legal back home. If your boss is screwing the tax man he will not want to call your bluff and may stop deducting from your pay.

This bluff worked for me when a school I worked for wanted to deduct W750,000 worth of "retroactive" tax, after not having deducted all year.

annabella · Joined: 05 Jan 2006 Location: Busan

After pointing it out to him yesterday (and showing him the NTS website himself so he could check), he said that he no longer wanted to extend my contract because I don't trust them (!).

He said that they were very angry because I don't believe them when they say they haven't taken anything for themselves - all 3.3% has gone to the tax office. Which should mean I'm in for a return next year, but this was not mentioned. His reason for my 3.3% tax was that the NTS website showed the tax rate for a salary worker, or something along those lines, and it's different if you're on an E2 or a foreign worker (hmm, really?!). Although, he did say I would get tax and pension receipts at the end of my contract showing all my contributions, so the proof would be there if he wasn't paying 3.3% after all.

I said to him yesterday that I wasn't accusing him of stealing, just checking something that had been pointed out. Let's see what he has to say today... I guess it comes down to whether he is actually taking extra money (how to prove this?), and whether I can live with losing 40,000w a month for what is a good situation.

Grotto · Joined: 21 Mar 2004

he's a typical Korean...when he gets caught doing something illegal he takes offense....poor him Razz

If he had half a brain he wouldnt have been so slimy to begin with!

annabella · Joined: 05 Jan 2006 Location: Busan

That was my initial reaction, why get all hot and bothered if it is all legit as he says?!

Also made me laugh when he said it would be very easy to find a new teacher to work for only 1.8m....good luck! Maybe a new school to start in March would be a better way to go after all, especially as I've obviously dented his pride. Poor man.

Corky · Joined: 06 Jan 2004

I think that once the reality of having to replace you sets in, he may rethink his position.

Big Mac · Joined: 17 Sep 2005

He's full of it. I paid 1.6 per cent tax (exactly what the tax website said I should pay) at both of my jobs in Korea.

I have noticed that a lot of hogwans have been putting 3.3 per cent tax in their contracts though...and I don't know why they keep doing that.

Your boss will never admit he is wrong on this issue, and if you keep bringing it up he'll just get really intimidating and make your life miserable. That seems to be the way they operate here when you discover that they've been doing something wrong. Same thing happened to me with a different issue in my last contract.

He won't let you re-sign now? It's his loss. There are better jobs out there and in your second year you can certainly get more than 2 million won at the proper tax rate. This guy's been getting a bargain for the past year. You're worth more than that.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

annabella · Joined: 05 Jan 2006 Location: Busan

I have the booklet for NHIC (without my full name on it), but have received nothing about my pension payments. If I find out my pension payments have been lining his pockets I'll be especially angry as I can't claim it back at the end of the year as I'm British.

My flight home at the end of my contract is already booked and paid for, and I'll make sure I have it in writing from him soon when I will get my final salary and severance.

I'm going home for a month in February, but am planning on coming back to start at the beginning of March for another 6 months (possibly for a year with the way things are looking). And as you say, my value will be a lot higher than a typical newbie with no experience or qualifications, so securing another good position for more money and similar hours should be no problem.