Definition
Korea's 연말정산 (year-end settlement) reconciles each employee's monthly tax withholdings with actual annual tax liability, producing refunds or additional payments.
Timeline
- December: notify employees to prepare deduction materials - January 15: employee self-entry deadline - February: company files to the NTS - Late February: refunds/additional deductions applied to payroll
Key deductions
- Family dependents - Housing (subscription, loan interest) - Medical, education - Credit/check card usage - Donations, pension savings
HR SaaS usage
Flex, SAP, and similar tools provide a year-end portal that auto-pulls Hometax simplified data → employee self-entry → company aggregation. Cuts admin time ~90% vs. Excel era.