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Does this sound like a shady situation?

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booya
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Joined: 04/25/2011
Does this sound like a shady situation?
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I've finished my 1 year contract and thus due my bonus payment of one month's salary, 2,200,000.  My company added it on to my normal salary, increased the taxes to an ridiculous amount (usually 32,000 now 320,000).  They claimed that they had to do this because it put me into a new tax bracket, so to say.  Next, they deducted double amount for pension and double amount for insurance.  By may calculations, they deposited 1, 489,000 of the 2,200,000.

Has anyone come across this situation before? This seems rather odd to me.  What can I do?

supermansfoot
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Joined: 11/02/2009
Re: Does this sound like a shady situation?

I never heard of a tax increase that high although with a higher amount you would obviously pay a little more tax. the pension doubling also makes sense to me as it's a percentage of your wage so if your wage is doubled then so is the pension but the most shady thing to me is the insurance. It should be a monthly fee and therefore unaffected by how much you are paid. I expect someone in payroll didn't consider that though.

stlavery
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Joined: 08/18/2011
Re: Does this sound like a shady situation?

The previous poster was right in a sense,  a little more tax -but not ten times as much. You still have to pay pension and insurance on your bonus. I have been here for eleven years, and I have never had my last month and bonus lumped together.

If they are telling the truth about the higher tax bracket, then simply ask them to make it two seperate payments. Your bonus is known as the 13th month. Have them pay it as such and you will not reach the higher tax bracket. If there is one.

I think thet are trying it on. Question this further.

dude777
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Joined: 04/08/2012
Re: Does this sound like a shady situation?

Is this severance pay you are referring to, OP? It does sound a bit shady but so does the very small amount of tax you have been paying, so you may not want to shoot yourself in the foot!

You can go online and the Korean tax office has a link where you can enter all your details and check the final tax bill. It may be they had to take the 320,000 to balance the tax bill - unlikely, though. 

The big problem is no matter what figures they give, if they are wrong at the end of the year, you will either get a refund or be hounded for money. So there is a little chance your employer has been told by the tax office they need this amount to balance the books, as you will not be around to pay next year.

Check it out online and take it from there. (You will need at least your final payslip to do this, as you need all to enter all contributions and deductions made)

mattvsmith
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Joined: 03/03/2011
Re: Does this sound like a shady situation?
Yes, it sounds shady. Take your documentation to the Busan Global Center (13th floor, national pension service building) in Yeonje-gu, across from City Hall. I can't remember the details, but they have a regular time when a lawyer is there to help us foreigners. Give them a try. I've always found the Busan Global Center very very helpful.
kwaz666
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Joined: 10/21/2009
Re: Does this sound like a shady situation?

Who said the global center has a lawyer?

They will just send you to the ministry of labor, don't waste your time or the global center's time.

Unless you are staying here another year forget the 400,000 and go home its not worth the wait or hassle

booya
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Joined: 04/25/2011
Re: Does this sound like a shady situation?

Thanks for the ideas. Actually, the Global Center has helped a lot.  I don't know if they have a lawyer on hand, but at least they contacted one and got back to me with some info.

Red Beard
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Joined: 02/10/2012
Re: Does this sound like a shady situation?
I was the manager of foreign faculty of a hakwon before, let me say it right now this is straight up a scam and not an uncommon one. Hakwons have a reputation for deception, greed, and the likes. They often cheat foreigners, especially new teachers, because they think you do not know the system. Don't put up with it, them you will check this with a lawyer, Korean IRS, or even the board of Education and they will fold.
aldrion
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Joined: 01/31/2013
Re: Does this sound like a shady situation?

Super, ultra shady. Ypur best bet is to go to the labor board immediately.

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