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fortysixyou
Joined: 08 Jun 2006
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 Posted: Tue Aug 26, 2008 9:04 pm Post subject: Severance: Am I Getting Screwed Here ? |
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I'm nearing the end of my contract, and it's severance payment time.
Let's suppose school pays me 2.3 for the last month, plus 2.3 for the severance payment, MINUS 500,000 for taxes. Is this right?
2,300,000 last month
2,300,000 severance payment
-500,000 taxes
Suddenly my taxes jump from 3% to 10% during my last month?
Am I getting screwed here? Is there anything I can do? Can I seek professional help here?
I know this is a boring question, but I'd really appreciate any help. |
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cazzy3
Joined: 07 May 2008
Location: kangwon-do
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| Posted: Tue Aug 26, 2008 9:21 pm Post subject: |
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were they not taking out taxes in the previous months and decided to make this an accumulation of the past? your salary was 2.3 million each month- did they pay you 2.3 or something closer to 2.2 after taxes? If it's the latter, it sounds like they are taking waaaaay too much out.
make sure it's not the pension money as well. if you're leaving the country for good and you're a US citizen, you're entitled to that money as well. |
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The Grumpy Senator
Joined: 13 Jan 2008
Location: Up and down the 6 line
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| Posted: Tue Aug 26, 2008 9:33 pm Post subject: |
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| I do not know the percentages, but severance pay is taxed at a different rate than regular pay. Just like bonus pay back home. |
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Temporary
Joined: 13 Jan 2008
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| Posted: Tue Aug 26, 2008 10:11 pm Post subject: |
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| Yeah your getting screwed.. It shouldn't be more then 68000 for 2.3 mil |
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byunhosa
Joined: 18 Jan 2006
Location: Center Ice
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| Posted: Tue Aug 26, 2008 10:15 pm Post subject: |
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| The Grumpy Senator wrote: |
| I do not know the percentages, but severance pay is taxed at a different rate than regular pay. Just like bonus pay back home. |
Severance pay is taxed at a lower rate than ordinary income (generally about half). So yes it appears the OP is getting the shaft. OP, ask for an explanation to determine whether there are other withholding obligations involved. |
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maddog
Joined: 08 Dec 2005
Location: Daegu
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| Posted: Tue Aug 26, 2008 11:23 pm Post subject: |
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My deductions on a salary of 2.3M came to about 200K. Severance is taxed, but that's all. There should be no pension or medical deductions. Tax on 2.3M is about 46K.
So, the total deduction from your combined final salary and severance should be about 250K.
Yes, you are getting screwed.
Demand a pay-slip. I have insisted on monthly pay-slips from day one.
MD |
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fortysixyou
Joined: 08 Jun 2006
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| Posted: Wed Aug 27, 2008 2:40 am Post subject: |
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Yeah, so being forthcoming, I make 2.3.
My payment every month is 2.1 after deductions.
I get pay slips, and tax deductions are about 3%.
So suddenly, during my last month it jumps up to 10% ?
So there's something fishy going on here, what can I do ? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Aug 27, 2008 5:25 am Post subject: |
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| fortysixyou wrote: |
Yeah, so being forthcoming, I make 2.3.
My payment every month is 2.1 after deductions.
I get pay slips, and tax deductions are about 3%.
So suddenly, during my last month it jumps up to 10% ?
So there's something fishy going on here, what can I do ? |
Contact the national tax office - foreigner advocate. You are getting screwed.
http://www.nts.go.kr/eng/help/help_21.asp?top_code=H001&sub_code=HS02&ssub_code=HSB1
You can also call them (for information) at 02-397-1440 or 02-2076-5711.
They can tell you the law and where your local tax office is to file a complaint.
Oh, and just for the record:
On a base salary of 2.3 mil your monthly withholding should have been 45k won per month
AND
Even if your employer simply DOUBLED your income for calculation purposes in the last month (not appropriate) the withholding tax on 4.6 million is only 373k won.
. |
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semi-fly
Joined: 07 Apr 2008
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| Posted: Wed Aug 27, 2008 5:26 am Post subject: |
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| fortysixyou wrote: |
Yeah, so being forthcoming, I make 2.3.
My payment every month is 2.1 after deductions.
I get pay slips, and tax deductions are about 3%.
So suddenly, during my last month it jumps up to 10% ?
So there's something fishy going on here, what can I do ? |
Now this may sound silly, but wouldn't you expect them to take out more since you've earned more (overall) than a standard paycheck? |
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kittykoo
Joined: 02 Sep 2004
Location: Canada
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| Posted: Wed Aug 27, 2008 12:37 pm Post subject: |
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| When I left Korea I had to pay my utility bills in advance so that the next person in the flat would not be stuck with my cable, telephone and condo fees. Maybe your director is withholding those fees and has not explained this to you. |
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