Today, we will explain the concept of what an ‘earned income withholding tax receipt’ is, the meaning of withholding tax, and how to issue a withholding tax receipt.
If you have been working for many years, you probably understand the concept to some extent.
In the case of people who have just started their social life or who have had no access to education on earned income and year-end tax settlement.
I think it will be helpful to some people.
What is earned income?
In order to understand what an earned income withholding tax receipt is, you must first understand the concept of ‘earned income.’
The income that workers receive in return for providing labor for services or production activities is called earned income.
This includes wages, bonuses, allowances, etc. paid when an individual enters into a labor contract with a company, complies with it, and provides labor.
Employee
Meaning of withholding tax
When profits or income are generated by an individual belonging to the country, taxes must be paid at a tax rate based on the amount of income.
If an individual who provides work and receives salary must voluntarily pay taxes based on monthly income, not only personally but also national taxes.
In terms of management, efficiency is also bound to drop.
When an institution (company) that pays income from the government pays for labor, a certain amount is collected in advance according to the ‘Simplified Tax Amount Table’.
I had to pay it. The company pays the amount withheld from salary to the National Tax Service or the competent local government by the 10th of the month following the month in which payment is made.
Earned Income Withholding Tax Receipt (Amended 2021.11.29.).hwp
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Earned income withholding tax receipt form.hwp
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Earned Income Withholding Tax Receipt
What is an earned income withholding tax receipt?
A document that records in detail the details of monthly withholdings from earned income and tax settlement details of annual income by a company or institution.
It is called an earned income withholding tax receipt.
At the top of the earned income withholding tax receipt, the details of the person responsible for collection (business registration number, address, etc.) and the personal details of the income earner (name, resident registration number, address, etc.) are recorded.
At the bottom of the form, record the total income amount, determined tax amount, amount withheld, and additional or refunded tax amount.
If you are hired and quit during the year and work at multiple places, you must submit a statement of each income at the time of year-end tax settlement.
Enter detailed data by dividing it into main (current) place of work and previous (former) place of work.
Where and when issuance of earned income withholding receipts
If a worker needs a receipt for earned income withholding tax, he or she can request it from the withholding agent and verify the previous year’s income or
If you leave the company mid-term, you can check the details of your income up to the relevant working month. The timing of issuance of withholding tax receipts is determined by the employee.
When you leave the company, it is issued only when the year-end tax settlement is made at the end of December. Proof of this can be requested at any time, so an earned income withholding receipt is required.
You can request it from the company at the time or issue it online at the National Tax Service’s Hometax.
Previous year’s year-end tax settlement —> Request to the National Tax Service’s home tax or the company you worked for at the time of year-end tax settlement
Year-end settlement for early resignation of the current year —-> Issued upon request from the company where the employee resigned early
<If the company has submitted data to the National Tax Service, an online inquiry can be issued through the National Tax Service’s Hometax>
The main reason why workers are issued withholding tax receipts is to use them for year-end settlement at the new workplace if they change jobs during the year.
This is when it is issued at the request of a financial institution due to a loan, etc., or when documents proving income are required.
How to issue earned income withholding tax receipt online
You can receive an earned income withholding tax receipt from the National Tax Service’s Hometax website. Since it can be issued online, there is no need to
It is very convenient in that you do not have to go to a government office.
To issue an offline withholding tax receipt, you can go to a nearby community center and obtain one through a civil service issuance machine or counter.
If you have a joint certificate (formerly a public certificate), it can be conveniently issued over the Internet.