Mandatory Submission of Daily Worker and Special Employment Income Payment Data Starting This Month... Monthly Reporting Required

[Asia Economy Reporter Jang Sehee] From this month, businesses that pay income to special-type workers (special employment types, or "teukgo") such as daily workers, insurance planners, and private tutor instructors must report the payment details monthly.

The National Tax Service (NTS) announced on the 10th that withholding agents (businesses) who paid daily labor income or personal service business income last month must submit income data by the 31st. Since the day before, the NTS has sent guidance notices related to the submission of daily worker and teukgo income payment data to 1.35 million entities, including individuals, for-profit and non-profit corporations, and government agencies.

The government shortened the income data submission cycle from quarterly or semi-annually to monthly to establish a "real-time income tracking system" necessary for expanding nationwide employment insurance and disaster relief payments. Accordingly, businesses that paid income to daily workers or teukgo must submit data related to the income paid in the previous month every month starting this month.

Submission obligations apply not only to individuals and for-profit corporations but also to government agencies and non-profit corporations. When employing daily workers and paying income, a Daily Labor Income Payment Statement must be submitted.

When income is paid under contracts with teukgo such as insurance planners, loan solicitors, credit card membership recruiters, private tutor visiting instructors, door-to-door salespersons, rental product visiting inspectors, and after-school instructors, a simplified payment statement (resident’s business income) must be submitted.

A penalty tax will be imposed if the income data submission deadline is missed. Small businesses with 20 or fewer regular employees that pay withholding tax semi-annually can submit data by the previous deadlines (daily worker income by the last day of the month following each quarter, teukgo income by the last day of the month following each half-year) to be exempt from penalty tax for one year. However, from income payments made in July next year, penalty tax will be imposed if data is not submitted.

Data submission can be done remotely via electronic filing through Hometax or the Hometax mobile app without visiting the tax office. Electronic filing on Hometax or the mobile app is available from the 6th to the last day of the submission month. To reduce the burden on businesses, the NTS provides a "Simple Labor Cost Submission" program and "How to Submit" video tutorials. When submitting data, attention must be paid to the income type and the classification of the income earner’s industry.

If daily workers such as restaurant kitchen assistants or construction workers are employed and paid income, the income type must be recorded as daily labor income and not as business income. For business income, the correct industry code matching the business content must be entered. For example, if a cosmetics door-to-door salesperson is classified as other self-employed, the income earner may be excluded from employment insurance benefits.

Meanwhile, daily workers or teukgo individuals can check their income submitted by businesses on Hometax or the mobile app. If the payment statement has not been submitted or was submitted inaccurately, they can report directly to the NTS.

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