One of the things to worry about when leaving the company mid-year is the year-end settlement. Obviously, the application process is different from when you work for a company. From now on, I will tell you about the year-end tax settlement method and related information for those who left mid-term. Please read carefully and make sure you receive your precious money.
Year-end settlement method for mid-term retirees
1. After leaving the company throughout the year, in the same year 중도퇴사자 연말정산
In this case, you must obtain a withholding receipt from the company prior to the job change and submit it to the current company for year-end settlement. In other words, if you worked from January to May, you must request the wage and salary income withholding tax receipt by May from the previous company.
In most cases, it is burdensome to call for documents requesting when changing jobs. For this reason, it is best to obtain a receipt for withholding income from earned income when leaving the company. What should I do if I have not been issued a certificate and it is difficult to call my previous company 좋은뉴스
In this case, you do not have to worry because you can use Hometax to get the issuance. However, if you use Hometax, it may take some time because the documents are not available immediately. If you do not meet the submission date due to time consuming, you can file a tax deduction when filing your global income tax return in May.
2. If you do not get a job after leaving the company
If you are not working for the company, this is not subject to year-end tax return. This is because the company is obliged to apply a basic deduction to the last salary of the retiree and pay the salary. In order to receive deductions for other items such as insurance premiums, credit cards, medical expenses, etc., you have to wait until the filing period for global income tax in May.
When the reporting period comes in May, you can report each of the details downloaded through the Year-end Settlement Simplification Service and a receipt for the withholding of earned income (request from previous employer or home tax). If there is a refund, you will get it back around July.
3. When year-end settlement is not necessary
There are cases where year-end tax settlement itself is not necessary, regardless of whether you have changed jobs or are currently unemployed. This can be seen by looking at the income tax withholding receipt. You can see how much is written in the item labeled ‘Determination Tax Amount’. If it is ‘0’, it means that there is no tax refund, and it is stated that you have already received a refund from your previous job. In this case, you do not need to apply for year-end tax settlement.
4. In case of resignation on December 31st
If you change your job after working by December 31st, you will not be able to receive year-end tax settlement at the company you moved to. This means that when leaving the company, basic tax credits were deducted from the previous employer to provide wages, and the new employer cannot provide assistance with year-end settlement because there is no employee information. You can apply for deductions other than insurance premiums, credit cards, and medical expenses through Hometax during the global income tax return period in May.
concluding remarks
So far, we have learned about the method of year-end tax settlement for mid-term retirees. It may be a bit cumbersome, but do not forget to proceed as you must proceed in order to receive a refund.