Korean Job Discussion Forums

RnH · Joined: 02 Aug 2006 Location: Korea

We recently emailed the tax dept about whether or not the 3.3% tax that we are paying at teachers is too much - they repiled and said that it IS too much if you are EMPLOYED by your school BUT, if you are INDEPENDANTLY CONTRACTED out by the school..then 3.3% is correct. I asked them how I would know which one we were..and they said it depends on the conditions of our contract, and we would need to ask our employer. I would like to have all my facts straight before I tackle my boss about this tax issue..so can anyone clear this up for me? Thanx, I really appreciate it!

Grotto · Joined: 21 Mar 2004

Go to the tax post in the FAQ section

Check your monthly withholding tax...that is what they should be deducting. About 1.5% on a salary of 2 mil.

kprrok · Joined: 06 Apr 2004 Location: KC

Grotto, you're missing the point. The tax office itself said that 3.3% is correct if you are an independent contractor and not "employed" by the school. The OP, unless of course I'm reading this wrong, is wondering how to find out the difference between the two types of position.

To the OP, I would think it would be quite easy...I know in my contract, ARTICLE I says "blah blah blah...known as "employer" and blah blah blah "henceforth known as employee." That would settle the matter to me.

I think I'll have to look into this as well. I never gave it much of a bother as it was only 15 bucks a month difference, but why not look into it?

KPRROK

ChuckECheese · Joined: 20 Jul 2006

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

RnH · Joined: 02 Aug 2006 Location: Korea

Thanx for all the advice..we really appreciate it! I definitely think that our school is taking advantage of us with the 3.3% issue. We dont receive pension (korea doesnt offer a reciprocal tax agreement with our home country.. so i suppose it doesn't really matter)or medical aid (they offerred it to us but we turned it down cos we have really comprehensive travel insurance). So theoretically..because they offered it to us..then I would say that we are employees (which it mentions in our contract) and not contracted. But still, we dont pay pensionor medical...which does make you wonder if they are using that to their advantage! We will definitely try and get hold of the tax office again and maybe try and get some tax receipts out of our boss. Thanx again everyone!

lastat06513 · Posted: Mon Sep 11, 2006 3:22 pm Post subject:

From what the tax office told me, I was to pay only 3% of my monthly income as tax. Anything more than that is robbery.
The best way to know how much you are paying is to demand a copy of your tax statement- all schools should be able to supply one when requested. I have done it from all my schools as proof of employment overseas just in case the IRS asks why i haven't paid income tax in the US since 2000.

If they fight or even refuse to give you a statement; ask them again kindly and if they refuse then you can give your name, ARC number and school info to the local tax office for a copy of what they have on record- if they don't have anything on record, then you know something's up...

But I would say before you do that, tell your boss, then he might give you a straight answer right away instead of having to bear an audit of his finances.

I would say if you can't find a person who speaks English in your area tax office, go to a district like Itaewon and ask them your question, they would be very helpful- they were to me Wink

You are a "contract" employee because you came to Korea on a contract basis, remember that.....
By that, I mean year-by-year instead of indefinite period, thats where they might get you.