Korean Job Discussion Forums

[benblex]

Hello everyone,

Just got a part-time gig (3 times a week, 1 hour classes) that pays 38,000 won/hr. The management said I'd get taxed 4%.

Is this legit? I wasn't sure about part-time work and if it was supposed to be taxed (my last part-time gig, I got the full amount without being taxed).

Thanks

[jinju]

Ofcourse. You are working and you should be paying taxes. Non-payment of taxes is one of the reason privates are not exactly legal. 4% isnt that much. Thats whay I pay for my contracted part time work.

What visa are you on?

[Homer]

Do you have your employers permission to work part time?

[benblex]

thanks for the responses

it's a part-time job--NOT private lessons.

also, i have an f-4 visa

[lastat06513]

You are on an F-4?
Here are some things to think about before being taxed;

1. Are you on their official payroll as a regular employee?
2. Do you have them as an amendment on your visa?
3. Do you realize that the real tax rate is 3%, not 4%?
4. Did you fill out a form from the municiple tax office making the deductions legal?
5. Will you be able to get the money back as a refund in January or at least get a tax reciept (You are entitled to get it upon request)

If not, demand your pay in full or find another job.

And no, part time is not taxed, contrary to popular belief. If they demand to tax you, ask them for their copy of your tax record and if they don't give it to you, threaten to go to the local district's tax office to request a copy of your tax record. That will scare the living daylights out of them.

[benblex]

i've heard from everyone on these boards that 3.3% is "the standard tax rate" for most teaching jobs in korea. of course, this is FULL-TIME.

is part-time work supposed to be taxed? i've heard conflicting answers. this new place i'd be working for (jungchul english) will have me working 3 hours a week (one lesson every m,w,f at an hour each) = total of 12 hours a month. and yet, they tell me they'll still be charging me 4% tax each month.

this right? if not, any source i can use (i.e. the tax office website) to back it up if i mention it to them? thanks!

[ontheway]

Hello benblex,

Korean taxes are progressive. That means the rate goes up as your earnings go up. There is no "standard rate" for teachers in Korea. If this part time job is your second job, then the earnings should be taxed at a higher rate than your first job. If your first job is 2 million or so per month, then you should be paying about 2% in monthly withholding. But, by the time you get to 3 million in montly earnings, your total withholding should be over 5%. That would be 150,000 per month in total between the two jobs. This is according to the monthly withholding calculator.

If you are reporting all of your earnings and you want to stay "legal" then you should make sure that your total withholding at both jobs is enough. You can go to the NTS website (it has been posted numerous times on Dave's) and calculate what your withholding should be based on your total earnings. You have to make sure that your boss is paying in what he withholds, however.

In the end, you should file a tax return. Just like in the US, this return could show that you owe more or get a big refund. You should actually use the NTS site to prepare a sample tax return for yourself. This will allow you to approximate your actual income tax payable for the year based on your estimate of your earnings. That tax number divided by your estimated total earnings will give you the best estimate of what your withholding rate should be.

[benblex]

hello,

thanks for your response.

actually, i had a full-time job but i quit. as a result, this part time gig (3 hours a week at 38,000 won per hour) is currently my ONLY job.

does this change things? i know you mentioned that taxes in korea are progressive and that there's no "standard rate." nevertheless, does this also mean that SOME part time gigs (whether or not they're your PRIMARY job or not) are NOT taxed and some are?

from what i hear from people who've done privates and other part time work, they almost never file taxes. yeah, maybe "illegal" but from what i hear, people don't seem to have any desire to go through that bureaucratic hoop.

your thoughts?

thanks!

[ontheway]

If you're only making 500k per month your tax rate should be zero. (Actually, I'm saying that from memory, but check the NTS site, I'm sure at 500.000 they should withhold nothing.)

As far as I know, from rumors and what not, many people in Korea under report their income and fail to file without any legal problems. That doesn't make it legal, though.

Many teachers, on the other hand, should file a tax return, because many employers over withhold. It's all a giant shell game. All taxes on income and property should be repealed. They are always unfair and unworkable.

[Wangja]

Letter to thr IRS:

Dear Sirs

I am British in USA on a spouse visa and have a part-time job paying 38 USD an hour.

Can you please confirm that I do not have to pay tax?

Yours faithfully

Response:

Dear Limey

You are right: not only do you not have to pay tax, you do not have to submit a tax return.

Do this for a couple of years and we can then arrange speedy transport to your country of origin.

Thank you for leaving our country.

Very truly yours

IRS

++++++++++++++++++++++