Korean Job Discussion Forums

nrvs · Joined: 30 Jun 2004 Location: standing upright on a curve

Everything sounds great at this hagwon job I'm probably going to be offered tomorrow afternoon. However:

They don't give out paystubs with monthly payments.

Payment is via direct deposit. Maybe this is strictly an American thing, but I always got a paystub at work with all of my deductions listed on it (various taxes, Social Security contributions, etc.) Is this done in South Korea?

I told them I'd need a paystub to prove to the IRS I'd paid income tax in South Korea. Some kind of receipt -- something official. I'd rather pay 3.5% than 15%!

They said that they'd give it to me at the end of my time there...but I've got to do my 2004 taxes before April 15, 2005. After some discussion in Korean, they said they'd be able to produce a receipt on demand, but it's too inconvenient to do every month because all of their payroll is done via a third party. They said "tax company," but I think they were talking about a payroll service. Which is understandable, as it's a pretty big hagwon.

They said that I wouldn't be making pension contributions.

At all. It's not even mentioned on the contract, so I asked. They discussed it in Korean, looked confused that I'd even asked, and said no. Not paying is just fine with me because I do my own saving for retirement, but is there any way I'd get in trouble with the R.O.K. for not participating?

I'm American, and there's some kind of reciprocity between my country and South Korea. I read on the Korean pension website that if there are more than 5 employees, participation in the scheme is mandatory. Even by foreigners. I don't want to seem like a total jerk by printing the info out and bringing it in, but I don't want to get in trouble with the government either.

Thanks a lot.

These probably aren't even things to get worked up over, but I'd like to know before I sign away a year of my life. This job seems super good on all fronts -- I don't want to raise a stink and ruin a great offer over stuff that's inconsequential.

sistersarah · Joined: 03 Jan 2004 Location: hiding out

at my last hogwan, they gave me a slip of paper eveymonth detailing what had been deducted from my pay and the final amount. i kept them all.

at my current hogwan, they don't. it's direct deposit, which is great, but i asked them for a paystub....but, my boss' english isn't too good, i'm the only foreign teacher (and second one at that).....i asked a couple times, but she didn't seem to understand. i gave up.

T-dot · Joined: 16 May 2004 Location: bundang

pay stun, never even seen one of those from my current school.

pay is on time is all that matters to me.

Son Deureo! · Joined: 30 Apr 2003

canuckistan · Posted: Tue Oct 12, 2004 7:47 am Post subject:

If you're filing taxes back home in Canada, the gov't doesn't accept hagwon pay stubs as proof of Korean income taxes paid. You should go to the Korean tax office and get an official tax receipt from them. You'll also find out pretty quickly if your hagwon has been paying your income tax to the Korean gov't.
A visit to the pension office will tell you the same thing.

To avoid hassles and paying more taxes back home than you have to (if you intend to file your Korean income) it pays to be pro-active while you're here.

The hagwon director may not like it though, especially if they've been scamming you for deductions and paying nothing on your behalf Confused

nrvs · Joined: 30 Jun 2004 Location: standing upright on a curve

I'm definitely going to file my Korean income. While the tax rate in the U.S. isn't nearly as high as in Canada, it sure isn't as low as 3.5%!

Zyzyfer · Posted: Tue Oct 12, 2004 8:54 am Post subject:

To answer the basic question, every school I've worked for has given me pay "stubs" for the first few months, and then they linger off after a while. I don't know any of the repercussions of not having every single pay "stub" back home, though, because I've yet to file taxes. Planning to do that this year...should be messy, even if I don't owe anything. Confused

Koreabound2004 · Joined: 19 Nov 2003

mishlert · Joined: 13 Mar 2003 Location: On the 3rd rock from the sun

Every hogwon I worked at in Korea had me sign for the pay, which showed:
-Gross anount
-Deductions
-Net amount

Once sigmed the money was wired into my account and I was given a copy of the said document.
Now I work at a university and am paid directly into my account with the pay stub emailed to me.
You should talk to your boss and first ask, and then demand for a stub.

Wisco Kid · Joined: 07 Sep 2004 Location: Changwon

I get paid via direct deposit into my bank account. The hogwan gives me a printed out "recipt" that shows all my deductions and additions from teaching overtime classes.

If the school is not paying into the pension scheme (and you are American as you say), that means you are missing out on an extra 4.5% of your total salary which the school is supposed to contribute that you eventual get when you leave Korea. Over the course of a year it makes a difference of around 1 million won.
I had to put up a small fight to get my school straight on this issue, and I'm glad I did. Definitely get it sorted out before you sign a new contract.

ajuma · Joined: 18 Feb 2003 Location: Anywere but Seoul!!

Americans don't need any kind of proof of income if they make less than...um...I think it's $75,000 a year, but it might have changed. Since you won't make NEARLY that much, you can just give the IRS a ballpark figure and they're happy. I've been filing for 8 years and have never had a problem.

If it's really important to you, don't ask for a "pay stub". Ask for "proof of income" or "income paper" or "pay paper". You'll have better luck!

JaphieR · Joined: 17 Apr 2004 Location: Bundang

prairieboy · Joined: 14 Sep 2003 Location: The batcave.

Son Deureo! · Joined: 30 Apr 2003

ulsanchris · Joined: 19 Jun 2003 Location: take a wild guess

ONe boss I had said it was impossible for him to give me a pay stub. I have nooooo idea why.