From This Month, Daily Workers and Special Employment Income Payment Data Must Be Submitted Monthly

Income Paid Last Month Must Be Reported by the 31st of This Month

[Sejong=Asia Economy Reporter Kim Hyunjung] From this month, business operators who pay income to daily workers, insurance planners, private tutor instructors, and other special-type workers (Special Employment Types, SET) must report the payment details every month.

The National Tax Service (NTS) announced on the 10th that withholding agents (business operators) 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 documents related to the submission of daily worker and SET income payment data to 1.35 million 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, business operators who paid income to daily workers and SET must submit data related to 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 paying income under contracts with SET such as insurance planners, loan solicitors, credit card membership solicitors, 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. Failure to meet the submission deadline will result in a penalty tax.

Small-scale businesses with fewer than 20 regular employees that pay withholding tax semi-annually can submit data by the previous submission deadlines (daily worker income by the end of the month following each quarter, SET income by the end of the month following each half-year) and be exempt from penalty tax for one year. However, penalty tax will be imposed for non-submission starting from income payments in July next year.

Business operators who have suspended or closed their business must submit income data by the end of the month following the month including the suspension or closure date.

Data submission can be done remotely via electronic filing through Hometax or the Hometax mobile app without visiting the tax office. Electronic filing via Hometax or the mobile app is available from the 6th to the end of the submission month.

The NTS provides an 'Easy Labor Cost Submission' program and 'How to Submit' videos to reduce the burden on business operators. Daily workers or SET individuals can check their income submitted by business operators on Hometax or the mobile app. If the payment statement has not been submitted or was submitted inaccurately, individuals can directly report to the NTS.

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