Workers with children aged 0-6, monthly wage withholding increases by 10,000 to 90,000 won

Input 2021.01.18 09:49

You pay taxes in advance, not more.

The monthly wage withholding for workers with children under the age of 7 will increase to around 10,000~90,000 won. However, an increase in withholding tax is paying taxes in advance, not more. This is because the tax is withheld from the monthly salary and refunded or additionally paid through year-end settlement.

According to the Ministry of Strategy and Finance on the 18th, the standard for child tax deduction in the simplified income tax table was changed from’the number of children under the age of 20′ to’the number of children aged 7 to 20 years old’ through the subsequent enforcement decree of the income tax law passed by the National Assembly at the end of last year. I decided to change.

This is reflected in the simplified tax table of monthly wages for workers in the changed system, as the subject of tax credit has decreased to under 20 years old (including school children under 7 years old) from 2019.

Since 2019, the government has expanded the target of child allowance payment to all children under the age of 7, and they have been subtracted from the children’s tax credit (150,000 won per child if there are two or less children, and 300,000 won per child from the third). Because they receive child allowances at a monthly rate of 100,000 won, they are not able to receive tax credits for children of 150,000 to 300,000 won per child.

Last year, this was not reflected in the simplified tax table. Accordingly, the tax burden increased as much as the tax deduction was not received for children under the age of 7 last year.

As a result, the monthly wage withholding of a worker with a monthly wage of 3 million won (excluding tax and school expenses) with one child under the age of 7 who is double-income increased by 34,860 won from 32,490 won to 673,500,000 won. If the monthly salary is 6 million won, the monthly withholding amount is expected to increase by 9,2970 won from 41,720 won to 503,690 won. If a worker with two children under the age of 7 who is double-income has a monthly wage of 3 million won, the withholding amount increases by 1,150 won from 21440 won to 32490 won.

The final tax burden for child tax credits was the same as last year. In other words, the more you walk with withholding tax, the fewer parts you need to pay for the year-end settlement, reducing the likelihood of paying more at the end of the year and increasing the likelihood of getting a refund. This means that you pay taxes in advance, not more. The new enforcement decree will be enforced through a state council meeting in February, and a new withholding method will be applied from the wages in February for workers.