The information I will explain today is related to the year-end settlement method for those who resign mid-term. The method differs depending on whether or not you are employed after mid-term retirement, so I will explain each situation individually.
Year-end settlement refers to the calculation and settlement of the amount of tax withheld from the salary received at the end of the year. At this time, if you paid more tax than your actual income, you will get a refund, if you paid less, you will have to pay the reverse. The method of year-end settlement for those who resigned mid-term according to their employment status is as follows.
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1. Year-end settlement method for mid-term retirees
1) In the case of moving to another place in the same year after leaving the company throughout the year
blackboard, post-it
meeting room
If a person who quits mid-term is re-employed in the same year, he/she is eligible for year-end tax settlement. The year-end tax settlement is carried out by adding up the earned income of the previous employer at the current workplace, which is the last place of work. The required document is the wage and salary withholding tax receipt (payment statement), which you can submit to the company.
How and when to issue the wage and salary income withholding tax receipt
How and when to issue a wage and salary income withholding receipt issuance Today, we will take time to learn how to issue a wage and salary income withholding receipt online, etc., where it is issued, and when. In case you need it at your previous job
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Note: If you do not add up the salaries of both workplaces and do not do the year-end tax settlement, the employee must file the final income tax return in May.
2) If you leave the company throughout the year and do not move to another place in the same year
woman with laptop
laptop
If a person who quits mid-term does not re-employ in the same year, he/she is not eligible for year-end tax settlement. However, she is subject to the May global income tax.
In the case of mid-term retirement, the company pays the last wage and salary income and proceeds with year-end tax settlement for retirees. Therefore, deductions for medical expenses, credit cards, etc. must be taken separately from the May comprehensive income tax. (At this time, it is also necessary to issue a wage and salary income withholding tax receipt)
Source: Hometax
1) Select Report/Payment on the Hometax main screen. 중도퇴사자 연말정산
Source: Hometax
2) In Report/Payment, select Tax Return Comprehensive Income Tax.
Source: Hometax 좋은뉴스
3) In global income tax, file a report on wage and salary income and you are done!
2. When it is not necessary to file global income tax
Image of wage and salary income withholding receipt
Source: Hometax
Before filing, check the determined tax amount column on your wage and salary income withholding receipt first! If the final tax amount is ‘0’, it means that there is no additional tax refund or that all taxes were refunded while leaving the company, so you do not need to file a final tax return.
3. Arrangement of deduction items (working period or other)
Deductions outside the working period or working period of the retired person
Source: Korea Taxpayers Federation
Lastly, I will summarize and conclude the section on deduction items that are easy to miss. Please be careful as there are some items that can be deducted only during the working period for year-end tax settlement and others that are not!
Until now, this was the year-end settlement method for those who left mid-term. I hope this was helpful and I will come back with better information.