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Misera
Joined: 12 Oct 2008
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 Posted: Mon Oct 26, 2009 4:54 am Post subject: Severance taxed? |
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Hey so I'm long back in the US.. but my school is removing more and more money @_@ (trying to get even more utilities from me even though they already took out 90k for my last utilities.. way more than I've ever paid in the summer.. plus insurance even though they didn't pay for pension the last half month pay period.)
Question, is severance taxed even if I'm under the 2 years?
I had my previous handler break it down as:
Severance = 2,000,000 (won)
Tax (52,800) = Income Tax (48,000) + Inhabitants' Tax (4,800)
Balance = 1,947,200
Frustrating to find myself with about 200k less than what was promised when I left  |
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dragon777
Joined: 06 Dec 2007
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| Posted: Mon Oct 26, 2009 5:28 am Post subject: |
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Misera, I may be wrong but I have been told by many persons that
severance is not taxed. My severance on two occaisions has never
been taxed, although this may occur from foreign governments. |
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dragon777
Joined: 06 Dec 2007
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| Posted: Mon Oct 26, 2009 5:32 am Post subject: |
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| General rule from hagwons and PS is that it is not. |
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Misera
Joined: 12 Oct 2008
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| Posted: Mon Oct 26, 2009 5:51 am Post subject: |
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| Ok thanks~ I'll call ministry of labor just in case sometime... dang timezone differences. |
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kprrok
Joined: 06 Apr 2004
Location: KC
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| Posted: Mon Oct 26, 2009 6:12 am Post subject: |
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Is severance income? Yes. Is income taxed? Yes. Does this mean that severance is taxed? Of course.
The key to this though is that tax is the ONLY thing taken out, no pension or health. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Mon Oct 26, 2009 7:34 am Post subject: Re: Severance taxed? |
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| Misera wrote: |
Hey so I'm long back in the US.. but my school is removing more and more money @_@ (trying to get even more utilities from me even though they already took out 90k for my last utilities.. way more than I've ever paid in the summer.. plus insurance even though they didn't pay for pension the last half month pay period.)
Question, is severance taxed even if I'm under the 2 years?
I had my previous handler break it down as:
Severance = 2,000,000 (won)
Tax (52,800) = Income Tax (48,000) + Inhabitants' Tax (4,800)
Balance = 1,947,200
Frustrating to find myself with about 200k less than what was promised when I left |
Health insurance in Korea is billed in calendar months. It is a flat rate for the month. The original calculation is based on a percentage of your monthly salary. There is no adjustment for overtime. You have to pay for the whole month even if you only work one day.
Pension used to be the same. It is still a flat rate billed monthly with the rate based on the midpoint of the range in which your salary level falls. (Only the midpoint is 9% with employer and employee each paying 4.5%)But now it is no longer required to pay the pension tax on partial months. Under the old rules it was possible and common for the pension tax to exceed 100% of a person's wages for a month. |
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Misera
Joined: 12 Oct 2008
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| Posted: Mon Oct 26, 2009 5:02 pm Post subject: |
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Blah just called mol.. then had to call tax office~
Tax office english number: 02-2076-5711
other number : 02-397-1440 (it hung up on me though while it was making me hold)
So the guy says we do have to pay that tax b/c there's no agreement with the US about severance/retirement as he called it.
He says for 3,000,000 won severance, the income tax is about 90k
For 2,000,000 severance income tax is about 50k
Inhabitants tax is 10% of the income tax.
He didn't give me exact numbers b/c he didn't want to calculate it but it's close enough. |
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