Daily Workers' Employers Must Submit Income Data 'Monthly' Starting This Month

Shortening the Income Data Submission Cycle for Platform Workers to Be Discussed Later in the National Assembly

[Sejong=Asia Economy Reporter Kim Hyunjung] As part of establishing a real-time income tracking system to expand nationwide employment insurance, employers of daily workers and others must submit income data 'monthly' starting this month.

The National Tax Service announced on the 18th that from July, withholding agents who pay daily labor income or personal service business income must submit income data monthly, instead of quarterly, semi-annually, or annually as before. However, the shortening of the submission cycle for platform workers' income data will be discussed and finalized later by the National Assembly.

For the second quarter of this year, daily labor income payment statements and simplified payment statements for the first half of the year (business income, earned income) can be submitted by the 2nd of the following month as before.

To ease the burden on withholding agents (businesses) caused by monthly submission of income data, penalties will be reduced. For daily labor income payment statements, the penalty for non-submission will be lowered from 1% to 0.25%, and the penalty for late submission will be reduced from 0.5% to 0.125%.

Although income data must be submitted monthly, small businesses will be exempt from penalties for one year (income paid from July this year to June next year) if they submit by the previous deadline, considering the burden of cooperation and time needed to adapt to the system. Small businesses refer to those with 20 or fewer regular employees and who pay withholding tax semi-annually. The previous submission deadlines were the last day of the month following each quarter for daily payment statements and the last day of the month following each half-year for simplified payment statements.

If the proportion of unclear payment amounts in the total payment amount recorded on the payment statements is 5% or less, the penalty will not apply.

Additionally, to effectively support the nationwide employment insurance expansion policy, the National Tax Service has newly separated and established industry codes under tax law so that personal service industry codes align with the types of special employment workers under employment insurance.

Approximately 1.4 million individuals, corporations, and government agencies will be notified in August (for income paid in July). To alleviate the inconvenience of receiving multiple notices monthly, an integrated notice will be sent. To reduce the reporting burden for businesses that find managing and submitting income data difficult, a program will be provided to easily submit daily and simplified payment statements.

The reporting convenience has been maximized so that even businesses unfamiliar with tax law can automatically generate and submit daily and simplified payment statements by simply entering work dates, industry, and payment amounts.

Furthermore, as part of redesigning tax services, a new portal called 'Bokji Eum' (Welfare Link) will be launched at the end of this month to consolidate previously scattered menus for welfare administration support services, creating a taxpayer-customized integrated platform that makes it easy to find and use welfare services.

This content was produced with the assistance of AI translation services.