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Korean Job Discussion Forums
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mjburks99
Joined: 13 Jun 2009
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 Posted: Mon Jun 22, 2009 9:28 pm Post subject: SMOE Contract - How long do I have to sign and return? |
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| Question for those of you out there with an SMOE contract in hand, how long do we have to sign and return it to them? I am currently in NY, a former finance worker impacted by the financial crisis here and still hope to look for a good opportunity should it come up. I am korean-american, so if I had the opportunity to teach in Korea for a year, not exactly something I would be upset about. However, the pay 1.8m won (approx $1400) is pretty terrible. I know housing is paid for and taxes are low, but still not a whole lot of money. Does anyone know what the consequences are for breaking the SMOE contract? |
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winterfall
Joined: 21 May 2009
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| Posted: Wed Jun 24, 2009 8:00 am Post subject: Re: SMOE Contract - How long do I have to sign and return? |
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| mjburks99 wrote: |
| Question for those of you out there with an SMOE contract in hand, how long do we have to sign and return it to them? I am currently in NY, a former finance worker impacted by the financial crisis here and still hope to look for a good opportunity should it come up. I am korean-american, so if I had the opportunity to teach in Korea for a year, not exactly something I would be upset about. However, the pay 1.8m won (approx $1400) is pretty terrible. I know housing is paid for and taxes are low, but still not a whole lot of money. Does anyone know what the consequences are for breaking the SMOE contract? |
I have until July 15th to get the contract and all of the documents to Korea. Consequences for turning down a job offer? If you haven't sign it yet than your not actually breaking a contract. The consequences? I don't know exactly, I'm assuming pretty serious. This is the public sector not private. If you ever plan on working in Korea again. You might not be able to.
On the bright side. Your not in a low tax bracket. Your in a tax free bracket. Your a US citizen right? Fill out form 2555-EZ during tax season while in Korea for deferring US side. Valid as long as your income is under $87,000. I don't know if this is a yearly income cap or a total cap. Either way your safe for at least two years. But you can't claim any deductibles. If you get a housing allowance it factors into your total income. And then fill out form (I can't remember the number) for a resident certificate.
Takes about 45 days minimum. And give it your employer in Korea BEFORE you get your first salary which will be in September and you won't pay Korean income taxes. This deal's valid only for certain jobs and works for two years. Fortunately SMOE qualifies. Hagwons don't count. And finally you get a pension refund when you leave Korea, show the pension office your plane ticket home. It's an employer match pension plan. I don't know if there's a separate tax on the refund. But, you'll still be able to walk away with a decent amount.
Overall your still not getting paid much but after putting it into perspective. It's not a bad deal. If you stay and get another job. How much are you gonna lose in taxes. 30%? Though its up to you. I don't want to make a public school job all about the money. That's just wrong. It runs against the spirit of the whole thing. I'm just trying to show the benefits of doing the job are quite good. That's only if money's the only thing that's stopping you. By the way the 2555-EZ US deferment only works on foreign income. If your leaving an investment account in the US. You still need to pay taxes on the profits. |
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winterfall
Joined: 21 May 2009
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| Posted: Wed Jun 24, 2009 12:10 pm Post subject: |
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| Patience, you posted this topic 3x. |
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