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Understanding Dual Contributions: Korean National Pension vs. U.S. FICA

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Understanding Dual Contributions: Korean National Pension vs. U.S. FICA Navigating social security systems across borders can be confusing—especially for employees working between Korea and the U.S. A recurring question is: Can someone pay into both Korea’s National Pension and U.S. FICA (Social Security and Medicare taxes) at the same time—and what happens if they do? This post breaks down how the Korea–U.S. Totalization Agreement works, what “coverage” means, and the consequences of dual contributions. 1. The Totalization Agreement at a Glance πŸ‡°πŸ‡·πŸ‡ΊπŸ‡Έ Since 2001, the Korea–U.S. Totalization Agreement has coordinated social security coverage between the two countries. Its primary goal is to: Prevent double taxation of social security contributions on the same income during the same time period Protect future benefit rights for cross-border workers Key principles: At any given time, only one country’s social security system applies to your wages C...
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Do I Need to Pay Myself a Salary as a Business Owner?

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  πŸ’Ό Do I Need to Pay Myself a Salary as a Business Owner? One of the most common questions solo entrepreneurs ask once their business starts generating consistent income is: "Should I pay myself a salary?" The answer depends on your business structure—and choosing the right approach can impact both your tax liability and legal compliance . πŸ‘€ If You're a Sole Proprietor or Single-Member LLC Good news: You don’t need to pay yourself a formal salary. In these structures, the IRS treats you and your business as the same entity. This means: You take an owner’s draw , not a salary. All profits flow through to your personal tax return via Schedule C . You're not considered an employee, so no payroll taxes or W-2s are involved. But remember: You’re still responsible for self-employment tax (which covers Social Security and Medicare), so setting aside about 25–30% of profits for taxes is a smart move. 🏒 If You're an S Corporation Here’s where thi...
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Hiring a Remote Employee in Georgia: What You Must Know About Payroll Compliance

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  πŸ“Œ Hiring a Remote Employee in Georgia: What You Must Know About Payroll Compliance As remote work becomes more common, many small business owners find themselves navigating complex payroll requirements across state lines. If you hire a remote employee who lives and works in Georgia , there are critical compliance steps you must take — even if your business is located in another state. In this post, we'll walk through exactly what you need to do — and when foreign business registration might be required. πŸ“ The Scenario You’ve just hired your first remote employee who lives in Georgia . What does that mean for payroll taxes? ✅ Step 1: Register for Georgia State Payroll Taxes Even though your business is not located in Georgia, you are still responsible for complying with Georgia’s tax laws if your employee performs work there . That means: 1. Georgia Income Tax Withholding You must: Register for a Georgia Withholding Tax Account through the Georgia Tax Center Wit...
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