In February of each year, year-end tax adjustments are made for the earned income earned in the previous year.
In other words, in February 2021, the income generated from January to December 2020 is settled.
If you have been working for the same company since January 2020, there is nothing to worry about.
After checking the simplified year-end tax settlement data at Hometax, print it out and submit it to the person in charge. 중도퇴사자 연말정산
Year-end settlement method for mid-term retirees, the latest in 2021
But what if you left one job in 2020 and moved to a new job, or you left and you didn’t belong somewhere?
Due to social issues, I think 2020 was not a year with a lot of dropouts in particular. 좋은뉴스
For these people, we have summarized the year-end tax settlement method for mid-term retirees.
Year-end settlement method for mid-term retirees
1. If you do not enter the company after leaving the company
This is the first case of the year-end settlement method for those who resigned mid-term.
If you are an ‘individual’, not an employee, you are not eligible for the February year-end tax settlement.
If you are not subject to year-end tax settlement, you do not have to do year-end tax settlement in February, and you can file your tax return directly during the global income tax return period in May.
I’m sure some of you are already stressed out, but it’s not that difficult.
Year-end settlement method for mid-term retirees, the latest in 2021
Year-end settlement method for mid-term retirees, the latest in 2021
Year-end settlement method for mid-term retirees, the latest in 2021
When an employee leaves the company, the company is required to do year-end tax settlement when paying the wage and salary income of the month of retirement.
So, it must have already been settled based on the month you left (many of you may not even know this, but there will be a statement you received when you left).
So, here are some of you who are thinking, ‘Don’t you remember putting out the year-end tax simplification materials that you pay when you leave the company and do your year-end tax settlement in February?’
Yes. In this case, only the ‘basic deduction’ was applied and the year-end settlement was simplified.
Nevertheless, the reason for having to re-settlement in May is to apply other deductions such as medical expenses and education expenses that were not deducted at the time of leaving the company to properly settle the account.
In other words, you can think of it as paying the total income tax return in May.
The only thing you need to file a global income tax in May is the withholding tax receipt from your previous employer.
Everything else you enter (each deducted expense in the simplified year-end tax settlement system) can be recalled, so there is nothing to prepare and nothing to worry about.
In most cases, the withholding tax receipt is given when leaving the company. If you have received a receipt when you leave, you can use it as it is, and if you do not receive it, you can get it again at Hometax.
(Of course, you can contact your previous employer and ask for it to be issued, but you can also get it at home, so there is no need for that.)
Year-end settlement method for mid-term retirees, the latest in 2021
Year-end settlement method for mid-term retirees, the latest in 2021
The withholding tax receipt can be issued at Hometax.
Year-end settlement method for mid-term retirees, the latest in 2021
For more details, please refer to the link below.
Follow the withholding tax receipt issuance method
Many people will receive a withholding tax receipt in preparation for year-end tax settlement. The withholding tax receipt is most commonly used for year-end tax settlement, but it is also a document necessary for housing subscription and income from other banks or institutions.
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Below is the location of the global income tax return menu in Hometax, so please refer to it when filing your global income tax return in May.
Year-end settlement method for mid-term retirees, the latest in 2021
Global income tax return screen
2. In case of changing company after resigning mid-term
Year-end tax settlement method for mid-term retirees In the second case, ‘If you change job’, you are required to make year-end tax settlement at your current employer.
Therefore, in most cases, a separate year-end tax settlement guide is provided for mid-term employees, so you can do the year-end settlement at your current workplace.
Year-end settlement method for mid-term retirees, the latest in 2021
Year-end settlement method for mid-term retirees, the latest in 2021
If you change your job, you can do year-end tax settlement at the same time as in the previous job, as it is subject to year-end tax settlement as an employee, so there is nothing special to do.
However, you will also need to submit the withholding tax receipt from your previous employer, so you only need to prepare this.
Please check the issuance method of the withholding tax receipt that you left before and receive it.
Above, we learned about the year-end tax settlement method for mid-term retirees.
In the case of a new job change, you can prepare for year-end tax settlement according to the company’s guide, but if the mid-term resignation does not go to another company, it can be summarized that the report should be made directly during the global income tax return period in May.
There is no need to worry in advance as it is the difference between submitting documents to the company or to the tax office, nothing more or less.
There is no special increase in the number of documents, and the process of filing a global income tax return is not too complicated.