Year-end Settlement for Early Departure and Dual Employment

The contract might end early — the settlement still has to be wrapped up on time.

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A foreign employee who leaves Korea before their contract ends has their year-end settlement performed early by the employer, based on income up to that point, when the final month's wages are paid — the same logic as a mid-year resignation settlement. No separate May filing is needed unless additional income arrives after departure.

Someone who worked for two employers in the same year (including job changers) has their new employer combine the withholding receipt from the previous employer into the settlement. If that receipt isn't submitted, the two employers' income won't be combined, and a supplementary May filing may be needed to reconcile it.

Before you depart early

Confirm with your employer that year-end settlement will be processed with your final paycheck
Gather simplified year-end data (medical, education, etc.) before you leave
Check whether your refund can be sent to a foreign account or an authorized representative

When changing jobs, don't forget your previous withholding receipt

You must submit the withholding receipt from your previous employer to your new employer's payroll team so both incomes are combined for an accurate calculation. If you missed doing so, you can still combine and file everything yourself during the May comprehensive income tax return.

Frequently Asked Questions

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