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  • ashwalton
  • Adventurer

    • 60

    • September 09, 2016, 09:25:25 am
    • Seoul, South Korea
    more
Having to pay after filing taxes.
« on: February 13, 2020, 03:26:40 pm »
Hello everyone, so I have a tax question.
I am a hagwon teacher working on my fourth year here, for the first two I was EPIK and tax exempt as I am American.
Then I moved to a hagwon and started the whole hometax and giving to my school the papers and everything. For that first year, I got nothing and had to pay nothing.
Now I am filing for the second year at a different school, I got the forms from hometax and gave to my school, and now my director is telling me I have to pay over 200,000 won to the tax office because "I made too much money (2.5 salary) but didn't spend enough money (over 8,000,000 won)."
From what I have heard from other people and this website, I feel like this isn't normal, I usually hear about people actually getting money back.
My director doesn't know why and the above quote is what the tax office told her, but I wanted a second opinion before paying this.
Thanks to anyone who offers me advice and sorry if this type of thing has been posted before, I could not find an answer anywhere on here.


  • JNM
  • The Legend

    • 4246

    • January 19, 2015, 10:16:48 am
    • Seoul, South Korea
Re: Having to pay after filing taxes.
« Reply #1 on: February 13, 2020, 09:21:29 pm »
If you changed jobs during the tax year, and got a raise, it is likely that you did not have enough deducted at source.


Re: Having to pay after filing taxes.
« Reply #2 on: February 14, 2020, 07:24:58 am »
Quote
For that first year, I got nothing and had to pay nothing.

Knowing hagwons and taxes, did you definitely pay tax?  Was your boss deducting every month at your first hagwon?  It'd be incredible if you completely broke even if tax was done properly. 

Also, remember that almost all of these government offices are not linked.  Immigration is separate from the tax office and it is only the pension and health office that are linked.  So you could be paying pension and NHIC health insurance but not tax.  Or you could be paying tax but no pension and health.  And as immigration only issues your visa, these three things are not linked to immigration.   Only through investigation would these be found out.  So it is entirely possible, that your first hagwon wasn't declaring any tax, and immigration would be none the wiser if you change jobs, issue you with a new visa, and you started only last year paying tax with your new job. 

Quote
I got the forms from hometax and gave to my school, and now my director is telling me I have to pay over 200,000 won to the tax office because "I made too much money (2.5 salary) but didn't spend enough money (over 8,000,000 won)."

Usually, schools 'guess' how much you should pay each month.  It is entirely possible that the 200 000 won figure is correct.  If your boss was deducting 80/90 000 won or so every month, then possibly paying 200 000 extra seems okay.  Say you earned 30 million last year, without the Hometax stuff you should pay about 1.5 million in tax.  Depending on how much you were paying each month will depend on your final readjustment.  You can check here for a rough idea...

https://www.nts.go.kr/eng/help/help_53.asp

Quote
I feel like this isn't normal, I usually hear about people actually getting money back.

It sounds perfectly normal, but again it depends on how your school is declaring your tax and income.  I would trust public schools more than a hagwon.  It's a business, they cut corners to save money.  By the sounds of it, and from your short post, it sounds like your new job is doing things properly, whereas your previous hagwon probably wasn't. 


  • ashwalton
  • Adventurer

    • 60

    • September 09, 2016, 09:25:25 am
    • Seoul, South Korea
    more
Re: Having to pay after filing taxes.
« Reply #3 on: February 14, 2020, 09:02:37 am »
Thanks for all the information, that actually makes a lot of sense. And yeah, at my old school, I always had a feeling things weren't run the proper way. I always got a sketchy vibe from my director, so even though I actually loved the school, kids, coworkers, I just couldn't stay.


  • oglop
  • The Legend

    • 2940

    • August 25, 2011, 07:24:54 pm
    • Seoul
Re: Having to pay after filing taxes.
« Reply #4 on: February 14, 2020, 09:10:03 am »
when does the tax settlement come in/get deducted from our bank account? is there a specific day it's all sorted?


Re: Having to pay after filing taxes.
« Reply #5 on: February 14, 2020, 09:29:20 am »
when does the tax settlement come in/get deducted from our bank account? is there a specific day it's all sorted?

Your public school one?  Mine and always has been this month as it's too late to take it out of the January one.  So on Monday, I get my salary, minus 1.4 million for tax.  But I talked to my nice admin lady, gave her my severance paper, so she'll pay my severance at the same time, two weeks early.   :-*


Re: Having to pay after filing taxes.
« Reply #6 on: February 14, 2020, 09:33:14 am »
It depends on how much you will need to pay and the school, but it's usually all in the next pay check if it's a small amount and if it's larger they can split it. I know they can split it with the refunds if it's a larger amount. So in your case it seems it would all be in the next pay check, because it's only 200,000 won.


  • oglop
  • The Legend

    • 2940

    • August 25, 2011, 07:24:54 pm
    • Seoul
Re: Having to pay after filing taxes.
« Reply #7 on: February 14, 2020, 09:39:29 am »
Your public school one?  Mine and always has been this month as it's too late to take it out of the January one.  So on Monday, I get my salary, minus 1.4 million for tax.  But I talked to my nice admin lady, gave her my severance paper, so she'll pay my severance at the same time, two weeks early.   :-*
ah yeah it might come out my pay check, true. i already got my feb paycheck though. maybe march, then.


  • Mezoti97
  • The Legend

    • 2698

    • April 14, 2011, 03:02:50 pm
    • South Korea
Re: Having to pay after filing taxes.
« Reply #8 on: February 14, 2020, 09:45:13 am »
ah yeah it might come out my pay check, true. i already got my feb paycheck though. maybe march, then.

Yeah, if you owe money to the tax office, then your employer will deduct it from your paycheck, not your bank account. In my case, I always see the tax adjustment reflected in my March paystub.