ESL Teaching - Jobs, lesson plans - View Single Post

Hypiereon · Mon 02-Jan-06, 01:54 PM

Thanks for the positive feedback from everyone who has written me so far. The point to rememebr here is that we must all start spreading the word on this information. Something I thought of recently is that a lot of schools seem to be hitting a ceiling on offering 4,000 RMB per month, and I asked myself why this number for a starting offer?

The reason, it occured to me, was that the Personal Income Tax (recently raised to 20%) kicks in on amounts over 4,000RMB. If you don't get paid more than that, then they don't have to mess with it. If you do then they have to either bring it up and make you pay it, or they will just quietly pay it themselves. Either way, if they keep you paid below 4,000 RMB then they don't even have to fuss with it. They could pay your more, it just involves this extra headache they'd rather avoid.

Again, this is not a good enough reason to keep from bargaining for more money. Letting them know of your knowledge of the Personal Income Tax and that you expect them to pay the tax on amounts over 4,000 RMB and that you fully expect to get paid more than 4,000 RMB should help move them along.

(((((P.S. Recently, the threshold for the personal income tax has also been raised. First, they raised the tax from 10% to 20% on amounts over 4,000 RMB; then, as of January 1st of 2006, they raised the limit to 4,800 RMB. All this means is that now you keep up to 4,800 RMB before the 20% tax kicks in, and the tax still only counts on amounts OVER the 4,800 RMB limit. So if you have a contract for 5,000 RMB, only 200 RMB is taxable at 20% which means there is a 40 RMB tax on a 5,000 RMB contract. If you write it into your contract that the school pays for the tax, not you, then you keep all 5,000 RMB and the school has to pay the 40 RMB tax.)))))

Mon 02-Jan-06, 01:54 PM	#4 (permalink)
Hypiereon ESL Addict Join Date: Aug 2005 Nationality: American Occupation: General Manager www.MilestoneGC.com Location: Posts: 140	SPREAD the WORD Thanks for the positive feedback from everyone who has written me so far. The point to rememebr here is that we must all start spreading the word on this information. Something I thought of recently is that a lot of schools seem to be hitting a ceiling on offering 4,000 RMB per month, and I asked myself why this number for a starting offer? The reason, it occured to me, was that the Personal Income Tax (recently raised to 20%) kicks in on amounts over 4,000RMB. If you don't get paid more than that, then they don't have to mess with it. If you do then they have to either bring it up and make you pay it, or they will just quietly pay it themselves. Either way, if they keep you paid below 4,000 RMB then they don't even have to fuss with it. They could pay your more, it just involves this extra headache they'd rather avoid. Again, this is not a good enough reason to keep from bargaining for more money. Letting them know of your knowledge of the Personal Income Tax and that you expect them to pay the tax on amounts over 4,000 RMB and that you fully expect to get paid more than 4,000 RMB should help move them along. (((((P.S. Recently, the threshold for the personal income tax has also been raised. First, they raised the tax from 10% to 20% on amounts over 4,000 RMB; then, as of January 1st of 2006, they raised the limit to 4,800 RMB. All this means is that now you keep up to 4,800 RMB before the 20% tax kicks in, and the tax still only counts on amounts OVER the 4,800 RMB limit. So if you have a contract for 5,000 RMB, only 200 RMB is taxable at 20% which means there is a 40 RMB tax on a 5,000 RMB contract. If you write it into your contract that the school pays for the tax, not you, then you keep all 5,000 RMB and the school has to pay the 40 RMB tax.)))))