To use the withholding tax filing feature, you need [Tax Filing Management] + [Business Location Settings] + [Payroll Settlement] + [Retirement Income Management] permissions.
You can import payroll settlement and retirement pay settlement results into the withholding tax return form for filing. Business and other income payments can also be uploaded and automatically imported into the return form.
Withholding tax filing is only available for finalized payroll settlements.
What is Withholding Tax Filing?
Rather than the income earner (employee) paying taxes directly to the government, the withholding agent (company) deducts taxes in advance from the income earner and pays them to the government (National Tax Service). This is called the withholding tax system.
The withholding agent must file and pay taxes (income tax) for the previous month by the 10th of each month. This is called withholding tax filing. (File withholding tax in the month following the payment month)
Creating a Withholding Tax Return
Click [Payroll] → [Tax] → [Withholding Tax Filing] tab, then click [Create Return] in the upper right.
When you select the filing period, the required settlements (payroll, retirement pay, business and other income) are automatically loaded.
Click the settlement items tab to select which settlements to include in the filing.
Businesses with 10 or fewer employees may file 6 months at once. Change [Monthly Filing] to [Semi-Annual Filing] in the upper left to file accordingly.
Click [Start Filing] to import the previously selected payroll and retirement pay settlement data.
If business and other income has been added, that data will also be imported. Add business and other income through Business Income Management & Other Income Management.
Click the image below to see which data is linked to each amount.
Fields with red dotted borders are editable, while cells with a light gray background cannot be modified.
Check the general refund amount. If there is an amount in the carried-over refund tax for the next month, it will be linked to the next month's withholding tax return.
For example, the carried-over refund tax from the February withholding tax return can be verified in the March withholding tax return.
After verifying the amounts, click [Complete Filing] in the upper right → click [Download Filing File] to download the withholding tax filing file.
Click the Excel file icon in the upper right to download a verification Excel file. File the downloaded electronic media file on HomeTax.
Click the three-dot button to change the withholding tax return status back to 'In Progress', make edits, then download the filing file again.
Withholding Tax Amended Return
You can automatically generate an amended return based on a previously filed regular return.
Simply edit the necessary items on the auto-generated amended return. Use the [Validate Return] button to verify the amended return is correctly prepared. Once validation passes, you can finalize and download the filing file.
