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Highwayman
Joined: 22 May 2011
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 Posted: Tue Jul 19, 2011 3:22 pm Post subject: Re: no |
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| SCAshley wrote: |
| rollthadice4 wrote: |
I need to bump this thread because I am in the same situation. I am American and I just had an interview and they said that I would not get the National Pension (and that I would get private health insurance fully paid for instead of 50/50 public health insurance).
I did not even know about the National Pension until the interview. It sounds like I should not take the job without being enrolled. Is this accurate? What am I really losing out on here? I am also worried that this private insurance might suck and just be a way of getting out of paying for decent public healthcare.
Everything else about the job interview seemed legitimate and pretty standard.
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With the pension, you're losing free money! Pension is 9% of your income-you pay 4.5% and your employer pays 4.5%. For example, if you're making 2 million a month, that's 90,000 that they take out and 90,000 that they match. At the end of you 12 month contract, that's 1,080,000 (roughly $1000 USD) that your school would have contributed over the year (plus the 1,080,000 you put in). If they don't give you pension, they're screwing you out of a nice chunk of change! It benefits some people (who aren't eligible for the refund) to have their schools skip out on it, but not if you're American! Plus, like other have said, they'll try to screw you out of other stuff too...  |
Wouldn't it be more like 2,160,000? |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Jul 19, 2011 3:33 pm Post subject: Re: no |
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| Highwayman wrote: |
| SCAshley wrote: |
| rollthadice4 wrote: |
I need to bump this thread because I am in the same situation. I am American and I just had an interview and they said that I would not get the National Pension (and that I would get private health insurance fully paid for instead of 50/50 public health insurance).
I did not even know about the National Pension until the interview. It sounds like I should not take the job without being enrolled. Is this accurate? What am I really losing out on here? I am also worried that this private insurance might suck and just be a way of getting out of paying for decent public healthcare.
Everything else about the job interview seemed legitimate and pretty standard.
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With the pension, you're losing free money! Pension is 9% of your income-you pay 4.5% and your employer pays 4.5%. For example, if you're making 2 million a month, that's 90,000 that they take out and 90,000 that they match. At the end of you 12 month contract, that's 1,080,000 (roughly $1000 USD) that your school would have contributed over the year (plus the 1,080,000 you put in). If they don't give you pension, they're screwing you out of a nice chunk of change! It benefits some people (who aren't eligible for the refund) to have their schools skip out on it, but not if you're American! Plus, like other have said, they'll try to screw you out of other stuff too... |
Wouldn't it be more like 2,160,000? |
Yes..but half of that was your original money anyway...that was taken out of your salary for the pension. |
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CentralCali
Joined: 17 May 2007
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| Posted: Tue Jul 19, 2011 3:57 pm Post subject: |
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| Don't forget that the Pension Office can and does enforce payments when they discover outfits and employees not paying. |
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Allthechildrenareinsane
Joined: 23 Jun 2011
Location: Lost in a Roman wilderness of pain
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| Posted: Tue Jul 19, 2011 9:41 pm Post subject: |
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| rollthadice4 wrote: |
Thanks SeoulNate, SCAshley, and Feloria; it seems pretty clear that I will not be taking this job.
Armin_Tamzarian and Allthechildrenareinsane, does your contract stipulate a 2% tax rate and say the pension is included? If not it seems like a problem, no? |
My contract actually stipulates a 4.4% (!) tax rate, which I stupidly agreed to as I was a complete and utter noob when I signed w/ my current school. The contract I recently signed w/ my new school, however, states the correct tax rate as well stipulating enrollment in both pension & insurance. |
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Tue Jul 19, 2011 9:56 pm Post subject: |
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| Armin_Tamzarian wrote: |
| My contracts said nothing about any tax rate or pension. It stated that insurance would be provided with the cost split 50/50. In fact when I brought up the pension my boss used the fact that it is not in my contract to say that I don't get pension. |
congratulations. you foolishly signed a terrible contract and your boss is hustling you.
now assuming the other half of your brain works do your homework and do something about it. |
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Armin_Tamzarian
Joined: 28 Jun 2011
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| Posted: Tue Jul 19, 2011 10:55 pm Post subject: |
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| marsavalanche wrote: |
| Armin_Tamzarian wrote: |
| My contracts said nothing about any tax rate or pension. It stated that insurance would be provided with the cost split 50/50. In fact when I brought up the pension my boss used the fact that it is not in my contract to say that I don't get pension. |
congratulations. you foolishly signed a terrible contract and your boss is hustling you.
now assuming the other half of your brain works do your homework and do something about it. |
What do you think this website is for? Notice how the majority are here to ask questions and get help? Now take your meds, STFU and let the adults talk. |
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Tue Jul 19, 2011 11:07 pm Post subject: |
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| Armin_Tamzarian wrote: |
| marsavalanche wrote: |
| Armin_Tamzarian wrote: |
| My contracts said nothing about any tax rate or pension. It stated that insurance would be provided with the cost split 50/50. In fact when I brought up the pension my boss used the fact that it is not in my contract to say that I don't get pension. |
congratulations. you foolishly signed a terrible contract and your boss is hustling you.
now assuming the other half of your brain works do your homework and do something about it. |
What do you think this website is for? Notice how the majority are here to ask questions and get help? Now take your meds, STFU and let the adults talk. |
adults? youre the one here getting cheated out of pension and a fool for signing a terrible contract.
if it werent for this thread you wouldnt even know you were entitled to pension. have fun being your bosses pet, koreans love taking advantage of suckers like you. |
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getwellnow
Joined: 07 Apr 2011
Location: United States
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| Posted: Thu Jul 21, 2011 3:18 am Post subject: |
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| marsavalanche wrote: |
| Armin_Tamzarian wrote: |
| marsavalanche wrote: |
| Armin_Tamzarian wrote: |
| My contracts said nothing about any tax rate or pension. It stated that insurance would be provided with the cost split 50/50. In fact when I brought up the pension my boss used the fact that it is not in my contract to say that I don't get pension. |
congratulations. you foolishly signed a terrible contract and your boss is hustling you.
now assuming the other half of your brain works do your homework and do something about it. |
What do you think this website is for? Notice how the majority are here to ask questions and get help? Now take your meds, STFU and let the adults talk. |
adults? youre the one here getting cheated out of pension and a fool for signing a terrible contract.
if it werent for this thread you wouldnt even know you were entitled to pension. have fun being your bosses pet, koreans love taking advantage of suckers like you. |
You mentioned that the poster should "do [his or her] homework and do something about it." Maybe a more productive way to add to the conversation would be to give the sucker (your words) some helpful links. |
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Bruce W Sims
Joined: 08 Mar 2011
Location: Illinois; USA
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| Posted: Thu Jul 21, 2011 6:20 am Post subject: |
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I was trying to find the thread that talked about the Korean Income Tax because it included a resource that a teacher could contact to make sure that all was being done as required. Does anyone know the office to contact to make sure that deductions from checks are being made correctly and that contributions are getting to where they are suppose to go?
BTW: Not to derail a thread, but if I already have Healthcare coverage. Need I take the coverage offered in Korea? Anyone?
Best Wishes,
Bruce |
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Nester Noodlemon
Joined: 16 Jan 2009
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| Posted: Thu Jul 21, 2011 7:18 am Post subject: |
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| Bruce W Sims wrote: |
I was trying to find the thread that talked about the Korean Income Tax because it included a resource that a teacher could contact to make sure that all was being done as required. Does anyone know the office to contact to make sure that deductions from checks are being made correctly and that contributions are getting to where they are suppose to go?
BTW: Not to derail a thread, but if I already have Healthcare coverage. Need I take the coverage offered in Korea? Anyone?
Best Wishes,
Bruce |
Did you sign with GEPIK? If yes, you will automatically be covered under National Healthcare. If you signed with Wonderland or CDI, you can opt out. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Jul 22, 2011 11:07 am Post subject: |
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| Bruce W Sims wrote: |
I was trying to find the thread that talked about the Korean Income Tax because it included a resource that a teacher could contact to make sure that all was being done as required. Does anyone know the office to contact to make sure that deductions from checks are being made correctly and that contributions are getting to where they are suppose to go?
BTW: Not to derail a thread, but if I already have Healthcare coverage. Need I take the coverage offered in Korea? Anyone?
Best Wishes,
Bruce |
Hello Bruce,
You should take the National Health Ins. That way you will have no problems getting treatment in Korea. Otherwise you will have to pay cash and have the cash available at the time of treatment. The insurance will cost you under 3% of your monthly pay. And legally it is required for employees to be covered, employee and employer each pay half. If you are an independent contractor, you are legally required to pay the full amount.
Your income tax will most likely be under 2%, unless you make more than the usual new teacher.
You and your employer will both be exempt from paying into the National Pension plan. Employees beyond age 60 are exempt and ineligible.
National Pension and Health ins. are required to be paid monthly following the time it takes to get enrolled. You cannot enroll until you get your ARC, so any delay here delays enrollment. However, legally you have only 10 days to get your ARC if you are teaching. You have to be registered at your local education office within 2 weeks.
Once enrolled, you can verify payments are being made by contacting the appropriate office. Your first month, especially if it is less than 30 days, you are generally exempt from paying pension and sometimes health ins. If you do have to pay for a partial month, even for one day or work, you have to pay for the entire calendar month. Health ins and Pension are not actually percentages. They are flat rate amounts according to brackets that are determined by your monthly base pay. There are no adjustments, up or down, for overtime, partial months etc.
The income tax is only required to be paid in to the Tax Office once or twice per year for most small employers, and, of course, you cannot verify payments that are not yet due to be paid. |
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Bruce W Sims
Joined: 08 Mar 2011
Location: Illinois; USA
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| Posted: Fri Jul 22, 2011 11:56 am Post subject: |
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Thanks Way; much appreciated.
But just to recap....and I am using the opening comments for the Contract Review Sticky........
When I am presented with my contract to review:
A.) I still want to be assured that I am represented as an employee and not a contractor. This won't effect the employer paying into the Pension since I am not eligible for it. It WILL however make sure that I get a lower tax bracket, yes? Right so far?
B.) The Healthcare still applies and yes, it would make much more sense to have care at hand instead of having to do it cash-in-hand.
C.) All other perks apply including housing for which I have to pay utilities, paid transport to and from Korea and severance pay, right? I ask this last because reading some of the comments regarding contracts this last bit about whether a person is due transport and severance pay seem to become conditional rather easily.
Thanks in advance.
Best Wishes,
Bruce |
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CentralCali
Joined: 17 May 2007
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| Posted: Fri Jul 22, 2011 12:46 pm Post subject: |
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| It doesn't matter if you're eligible to draw the pension or get reimbursement. What matters is the legal requirement to enroll and pay into the program. |
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Troglodyte
Joined: 06 Dec 2009
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| Posted: Sat Jul 23, 2011 4:04 am Post subject: |
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If you report to the pension office that your school isn't paying into it for you, then they will contact the school and force them to pay. Immigration might be lax about enforcing it's laws, the labor board might be lax about enforcing it's laws, but the pension office (and any other tax office) will enforce them with an iron fist. The government never willingly lets people get away with not paying tax.
Keep in mind though one thing. The pension office will tell your boss that you informed them of the situation. After that, your boss will find some reason to fire you. If you're in your first 6 months, then any reason is sufficient. So unless you are absolutely sure that your co-workers are willing to lose their jobs over this, approach it with caution. If you're near the end of your contract anyway, and you plan on taking another job elsewhere in Korea afterwards, then wait until you've transferred to the new job before informing on your boss (i.e. wait until they can't do anything to you).
About private insurance... Don't accept that. Usually it's some minimalistic stuff and will only cover you at the work place, under certain conditions. And you'll also have to pay in advance and get reimbursed later. If you get hit by a car while crossing the road, you're on your own. And more importanly, if you're unable to come in to work, you're boss will fire --> good bye E2 visa and apartment. |
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denverdeath
Joined: 21 May 2005
Location: Boo-sahn
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| Posted: Sat Jul 23, 2011 6:39 am Post subject: |
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| Bruce W Sims wrote: |
Thanks Way; much appreciated.
But just to recap....and I am using the opening comments for the Contract Review Sticky........
When I am presented with my contract to review:
A.) I still want to be assured that I am represented as an employee and not a contractor. This won't effect the employer paying into the Pension since I am not eligible for it. It WILL however make sure that I get a lower tax bracket, yes? Right so far?
Probably. Depends on how they report your earnings, and how they process things at the end of the year for you. Always best to check, but not always easy to do if you've left the country after your 12 months. They have over-payments and under-payments of personal income taxes here, the same as back home.
B.) The Healthcare still applies and yes, it would make much more sense to have care at hand instead of having to do it cash-in-hand.
True, but you still have to pay a nominal fee at the end of each visit to a hospital/clinic/whatever - it's a great system they have here, one Canada should've adopted long ago. You should insist on national health care, regardless of from where you're from.
C.) All other perks apply including housing for which I have to pay utilities, paid transport to and from Korea and severance pay, right? I ask this last because reading some of the comments regarding contracts this last bit about whether a person is due transport and severance pay seem to become conditional rather easily.
They should, but it's always best to double-check your contract. For example, a lot of universities do NOT provide airfare, and they may also be participants of the Korean Private Teachers' Pension Fund, which is both completely different from the national one, and completely legal.
Thanks in advance.
Best Wishes,
Bruce |
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