Korean Job Discussion Forums

[nahanni]

I've signed a contract with a school that offers NPP / NHIC but charges an inflated income tax rate of 3.3%

I directed them to the NTS tax calculator and they said that 3.3% was the correct rate. I've decided not to push the issue.

Questions:

1. Is it possible to do a tax return and claim the amount overcharged?....or is it likely not in my interest to bother stirring up potential trouble by talking to NTS when the hagwon may be hiding something?

2. If the tax return is worth doing, can I file the return at the end of my contract or only in February?

3. Is the process relatively simple to follow or tedious? I'm hoping for a NPP experience where I can walk into the office and have everything settled pain free.


Thanks

[YTMND]

[hogwonguy1979]

you better check your pay stubs and see if they are deducting pension and nhic.

if not you've been "ic"ed and the tax rate is right but you will have to pay all of your health and pension payments on your own.

there are a ton of threads here about the problems of being an independent contractor (don't be fooled by people like ontheway etc. saying its good etc. its only good for the employer as they save around 7% of your salary they'd be required to pay into pension and NHIC) if you are a newbie here then its NOT the way to go.

[nahanni]

Thanks YTMND:
Read a thread about someone doing a return for a public school and they mentioned February. Could easily be April I guess. Kind of a tricky situation if the school handles the tax issues and I'm trying to claim an inflated tax rate that they believe to be accurate.

Thanks hagwonguy:
This would be my third Korean contract. Previous jobs had NPP / NHIC. I've read throught the contract and talked to current foreign teachers that say they get full benefits. Everything says I'm not an 'independent contractor'. So, if I am getting full NPP and they`re deducting 3.3% then what`s my best option? Last school I worked at I called NTS and had them call my director to clear things up. It worked, but it easily could of made further problems which I would prefer to avoid this time.

[hogwonguy1979]

i bet a call to the tax office would help, they can then call your boss to tell him what the proper tax rate is.

smart money is on him pocketing the difference if you really think you are not being considered an independent contractor