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Punishment For Employers Under Reporting Pension/Salary?

 
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Nolos



Joined: 23 Oct 2011

PostPosted: Sun Jun 30, 2013 4:47 pm    Post subject: Punishment For Employers Under Reporting Pension/Salary? Reply with quote

I am in a situation where my employer has been under reporting my pension and salary for the last two years I come to find out. They have been deducting about 50k from my paycheck for pension but only depositing 25 or so in my pension account. And they are also reporting my salary as around 600,000 when I make 2.1.

Can they get in trouble if I report them to the labor board? Anyone here or anyone you know took action against their employer over something like this? I'm pretty angry.
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wings



Joined: 09 Nov 2006

PostPosted: Sun Jun 30, 2013 5:51 pm    Post subject: Reply with quote

From what I understand, if you have all the documents to prove your salary (pay stubs, contract etc) then they will ask you first to put in your half of the missing pension, and THEN they will go after your employer for their half. If you earn 2.1 then your half should be 94,500 per month. You'll have to give them all the back payments from your part, about 70,000 x 24 months, then they'll go after your boss.

It is absolutely worth it in the end, but your boss will of course HATE you for doing the right thing. If you are still working there I would play the innocent me card to avoid serious trouble for the next few months. Tell your boss casually, "oh I got a letter from the pension office asking me to go in a verify my income, so I called them and they said that I owe a lot of money and that I have to pay right away. I guess I made some kind of mistake with my papers."

Of course how you approach it depends on the relationship you have with your boss and how much longer you are going to be working there.

Good luck!
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Nolos



Joined: 23 Oct 2011

PostPosted: Sun Jun 30, 2013 6:50 pm    Post subject: Reply with quote

wings wrote:
From what I understand, if you have all the documents to prove your salary (pay stubs, contract etc) then they will ask you first to put in your half of the missing pension, and THEN they will go after your employer for their half. If you earn 2.1 then your half should be 94,500 per month. You'll have to give them all the back payments from your part, about 70,000 x 24 months, then they'll go after your boss.

It is absolutely worth it in the end, but your boss will of course HATE you for doing the right thing. If you are still working there I would play the innocent me card to avoid serious trouble for the next few months. Tell your boss casually, "oh I got a letter from the pension office asking me to go in a verify my income, so I called them and they said that I owe a lot of money and that I have to pay right away. I guess I made some kind of mistake with my papers."

Of course how you approach it depends on the relationship you have with your boss and how much longer you are going to be working there.

Good luck!

thanks for the reply. I just hope that the pension office follows through with making my boss pay. You know how lazy some i nposition can be enforcing Korean law.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Sun Jun 30, 2013 8:12 pm    Post subject: Reply with quote

Nolos wrote:
wings wrote:
From what I understand, if you have all the documents to prove your salary (pay stubs, contract etc) then they will ask you first to put in your half of the missing pension, and THEN they will go after your employer for their half. If you earn 2.1 then your half should be 94,500 per month. You'll have to give them all the back payments from your part, about 70,000 x 24 months, then they'll go after your boss.

It is absolutely worth it in the end, but your boss will of course HATE you for doing the right thing. If you are still working there I would play the innocent me card to avoid serious trouble for the next few months. Tell your boss casually, "oh I got a letter from the pension office asking me to go in a verify my income, so I called them and they said that I owe a lot of money and that I have to pay right away. I guess I made some kind of mistake with my papers."

Of course how you approach it depends on the relationship you have with your boss and how much longer you are going to be working there.

Good luck!

thanks for the reply. I just hope that the pension office follows through with making my boss pay. You know how lazy some i nposition can be enforcing Korean law.


IF you have the documentation to prove the under-reporting
AND
you backpay all that YOU owe
AND
you file the necessary paperwork
THEN
they will collect the balance from your boss.

Miss a step and you just waste your time.

Do be aware that NHIC will also com looking for unpaid or underpaid premiums AND the tax man may come looking as well.

All of that said, if you do follow through your boss will hate you (nothing like the tax man coming after him for an audit to ruin his week).

.
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Los Angeloser



Joined: 26 Aug 2010
Location: Korea

PostPosted: Sun Jun 30, 2013 10:00 pm    Post subject: Reply with quote

The important thing left out? is that the pension office will likely tell you that you'll have to pay your employer the money they failed to deduct/collect from your monthly salary which means(if I were you) you should get your employers bank account number and have your money deposited into their bank account so that there is proof that you paid your half. Many employers never provide pay stubs(even though it's the law) to employees so you better have proof that you paid your employer 50%. The bank way is better than recording or video taping yourself paying your employer money that your employer should have simply deducted from your salary. So sneaky aren't they aye?

Last I knew the pension office will not accept your 50%, you'll have to pay your employer who will then have to pay the pension office. Good luck with that!
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Wildbore



Joined: 17 Jun 2009

PostPosted: Tue Jul 02, 2013 5:26 pm    Post subject: Reply with quote

Almost the exact same thing happened to me.

Tell the pension office exactly what happened, show bank slips proving your pay, and try to prove what he deducted for pension, with a payslip or anything like that. The law puts the onus on the employer to prove what he deducted from you.

When I complained to the pension office, the first time they did nothing. I went back with a Korean friend and they took the matter seriously and forced my director to cooperate and pay the amount he embezzled.
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