How to issue a withholding receipt for wage and salary income !
If you worked as a freelancer or had a short-term part-time job, you must have received an amount minus 3.3% of your salary.
Why take 3.3% off your paycheck? 근로소득원천징수영수증 발급
What is the identity of this 3.3%?
By deducting 3.3% of tax from the salary paid by the business operator to the employer in advance
You pay the state on your behalf, which is called withholding tax.
3.3% is the withholding tax rate on business income.
So, today, I will explain how to issue a wage and salary income withholding tax receipt!
Before we get started, let’s learn a little more about withholding tax.
Earned income withholding tax receipt
First, wage income refers to the income received as compensation for the labor or services provided by workers. Withholding tax refers to a method in which tax is deducted and paid in advance when paying wages for labor in a company or institution that generates income or income. This is called an income withholding tax receipt.
Earned income withholding tax receipt is a document that is essential for proof of income when making year-end settlement, comprehensive income tax return, welfare-related application, and loan application. In this post, I will explain how to issue a wage and salary income withholding tax receipt and how to view the wage and salary income withholding tax receipt. If this was helpful, please click the like button at the bottom of the post
meaning of withholding tax
Withholding tax refers to a system in which a business operator collects the tax payable by the income earner in advance and pays it to the government instead of paying income (salary, business, other income, etc.) to income earners such as employees.
Business = payer (withholding agent) → Employee = income earner (taxpayer) 쉬운남자
Businesses withhold income tax when paying salaries, etc. to their employees, and issue a withholding tax receipt to the employees, etc. (income earners).
Business = Payer (person responsible for withholding tax) → Report: Tax office payment: Bank
Businesses must submit a declaration of reimbursement of withholding tax to the tax office and pay the amount of tax withheld by the 10th of the month following the month in which withholding was withheld.
* Income subject to withholding tax: Labor, retirement, business, other, pension, interest, dividend income, etc.
Why do you need withholding tax?
Withholding tax is necessary for the following reasons!
1. Easy tax management at the national level
(Management of corporations instead of all citizens) Because the withholding tax system operates, the government only needs to manage corporations from the perspective of the government, rather than managing all individual income taxes, so you can easily collect taxes and save on tax collection costs.
2. Prevention of tax evasion by identifying income and income
It contributes to preventing tax evasion by identifying income and income in advance.
3. Tax burden of taxpayers DOWN▼
As income is withheld at the time of payment, the tax burden on the taxpayer can be reduced.
4. When buying a house, getting a loan, or moving
To verify your annual salary or year-end settlement To prove the amount of income when purchasing or borrowing a house, you need a withholding tax receipt to verify the salary of your former employer when you change your job.
A withholding tax receipt is also required for year-end tax settlement.
What are the types of income under the Income Tax Act?
type of income
There are wage and salary income, business income, interest income, dividend income, pension income, capital gains, and other income.
You can refer to the table above for the withholding tax rate according to the type of income!
How to issue a wage and salary income withholding tax receipt
Today’s highlight! How to issue a wage and salary income withholding tax receipt
First, *how to ask the company you work for
Second, *There is a way to issue directly from Hometax.
* Hometax withholding receipt issuance method (employee)
Hometax access via mobile/PC
After clicking ‘My Hometax’ at the top, verify your identity (login)
Click on ‘Year-end Settlement/Payment Statement’ located at the fourth position in the menu bar at the bottom left
You can check the withholding tax by clicking ‘Payment statement submission details’ on the right
* Hometax withholding receipt issuance method (individual business owner)
The business owner issues a withholding tax receipt to the employee
How to issue is as follows.
Hometax access and login with mobile/PC
Click Apply/Submit in the top menu
(Employment, business, etc.) Click the statement of wage and salary (for year-end settlement) in the statement of payment
Click the View button in the tax data submission history
Click the desired employee in the list on the left and check and print the contents
Today, we learned how to issue a wage and salary income withholding tax receipt.
‘Withholding tax receipt’ required in various fields such as real estate sales, loans, and job turnover
Now you can easily get it through ‘Hometax’, so please take care of it and use it wherever you need it!