Understanding Employment and Industrial Accident Insurance Premiums

The responsibility for insurance premium payment on subcontracting sites lies with the principal contractor, with specific requirements for contractor recognition approval.

### Guidelines for Settling Employment and Industrial Accident Insurance Premiums
* 📝 When calculating insurance premiums on subcontracting or construction sites in Wondeok-eup, you can assess based on **sales records** and **indirect cost calculation details** on the construction cost estimate sheet in Meng 3. For more precise calculations, access the insurance premium information inquiry page and **enter the necessary information**.
* ⚠ Adjusting the start date of construction to January 1, 2020, may cause sites that started in 2019 and continued into 2020 to **not appear in the results**, leading to a risk of **missing sites and potential investigations**.
* 🔍 Clicking the search button on the insurance premium information inquiry page generates a screen that can be converted to Excel by clicking the **Excel button**. Pay attention to the information in the Excel file to determine which **insurance premiums need to be paid for each site**.
* 📄 Parts marked with "**X**" are sites where the company filed a business commencement report and can be small-scale construction sites that are not individually reported. Parts marked with circles indicate sites approved by the employer as the **original contractor**.
* 🤝 Subcontractors must have an agreement for the **payment and acceptance of insurance premiums**, and within 30 days from the start date of construction, submit a **contractor recognition approval application form** to the Labor Welfare Corporation in charge of the site.
* 💰 Even if insurance premiums are indirectly received from the original contractor, if the employer does not submit the application for recognition within 30 days, it is considered a **failure to meet the requirements**.
* ❌ If the recognition as an employer is not approved, there is **no obligation to pay insurance premiums**, but the relationship with the original contractor remains, and the received funds can be used for **miscellaneous expenses**.
* 🏥 For industrial accident insurance, the obligation to pay is straightforward, but for employment insurance, the reasons for not paying may include **canceled contracts, no changes in the number of on-site workers, and completed projects that do not generate revenue in the target year**.

Hello, I am Lee Booyoung, the team leader of the International Labor Affairs Division. Nice to meet you all. We are currently looking into the settlement of employment and industrial accident insurance premiums throughout March. As you can see, last time we discussed the obligation to pay. So, in the first 9 minutes, we talked about what premiums need to be paid, and in the next 9 minutes, we looked into what employment insurance premiums need to be paid. Now, let's take a closer look at how to pay for Grade 2 or Grade 1 sites on-site. Once again, for clarification, when it comes to employment and industrial accident insurance premiums, the responsibility lies with the principal contractor, and depending on the approval status, the contractor may not have the obligation to pay employment insurance or industrial accident insurance premiums. Subcontractors can handle this. So, in order to have a clearer and more accurate understanding of these matters, what do we need to do?

Let's take a look at what needs to be checked together. In order to clearly understand the obligation of insurance premium payment on subcontracting sites or construction sites in Wondeok-eup, there are ways to assess based on your sales record and judgment, or you can refer to the indirect cost calculation details on the construction cost estimate sheet in Meng 3. However, if you want to be more precise, when calculating insurance premiums, please access our page as shown. So, after accessing it, click on Information Inquiry and then click on Insurance Premium Information Inquiry 3. As you can see, a screen like this will appear. Among them, you will see a button called Business Start Business Status Church. When you click on this button, you will be able to see a page like this. You will see the section I marked in red, where you need to enter your information, and then simply click the search button.

Here is where the trap is set. When you press the insurance premium section, everything will disappear, things like employment insurance and industrial accident insurance will come up. However, what I would like to urge you all is not to press anything. Do not press anything, just press one thing. There will be a part that looks like a magnifying glass here. Press that part, take the on-site management number, which is the management number of our business, it will be attached to number 6. Select that and choose it, then you don't need to touch the remaining two. However, occasionally, there are one or two big mistakes that you make. There is a part that says the start date of construction. Press the calendar icon of the start date and as we are calculating the insurance premiums for the year 2020, set the start date to January 1, 2020.

Sometimes there are cases where it matches, so will it work or not? I don't know well. It doesn't work. Why doesn't it work? The current law we use to calculate insurance premiums, as I showed earlier, if you look at this page, there is a part I mentioned here. The sites we are currently targeting include all the sites in progress in 2020. So, even for Site A, which started in May 2019, since it spans into 2020, we consider it as a target site. However, as you can see here, if you adjust the start date of this construction to January 1, 2020, only the ones declared after January 1, 2020, such as commencement reports or subcontractor details, will be shown. As shown earlier, you can see that things started in 2019 and continued into 2020 will not appear in the results. So, the insurance premium payment...

There is a significant risk of missing the scene, which can eventually lead to an investigation and collection. So please be careful with this part. However, being cautious doesn't mean you have to do something. You don't have to do anything. So, click on the search button. When you click on the search button, you will see a screen like the one you sent. There is an Excel button on the top right of this screen. If you click the Excel button, it will be converted to Excel as you see on the screen now. So, let's focus a bit on this screen and the Excel screen. Shall we see together what we need to pay attention to? First of all, what does it say in Insurance Section 9? It says industrial accident employment. It repeats industrial accident employment like this. What is this part about? It explains what insurance premiums should be paid for this site you are looking at. For the site in Namju-myeon, Chuncheon, Gangwon Province, all industrial accident employment insurance premiums are paid.

It's saying that it needs to be done. If you know that, it's good. Also, here you can see parts marked as X and parts marked as circles. Now, what is the difference? Let's read the title above. It says Approval of Sewer Recipients. Literally, it's about whether the sewer recipient has been approved or not. The sites shown below are both sewer recipients, but the ones marked with circles are sites that have received approval from the sewer recipient employer. The ones above have not received approval from the employer; there is no record of approval, but they are marked here. This is what we call an unapproved site. Who determines the approval of the business? It is related to employment and workers' compensation insurance. In other words, an unapproved business means that it does not have approval from the employer. Therefore, we can understand that it is a Wonder 904 site.

You can probably guess what this is about. I reported this. You all should know that. On the other hand, there are scenes with circles below. If there is a circle, it basically means it is related to public institutions. However, as much as it is recognized as an employer in the insurance group, it means that it has been acknowledged as an employer. If it is acknowledged as an employer, what should be done? In the previous session, I mentioned that we are responsible for paying insurance premiums for that site. So, as you can see, for this site, it's the same for the 3rd, 4th, and 5th sites. When it comes to employment insurance, you should know that these are sites where you have to pay like an employer. This is the general information. Now, if I may share with you the expertise I have accumulated over the years through dealing with employment and industrial accident insurance settlements and investigations, one thing to note is the timing of settlements. When you see this business commencement or letter...

There are things to ignore and things to trust 100%. We can divide it into these two. First, what should be ignored? Basically, I ignore the parts marked with an x. Why do I ignore them? As mentioned earlier, the parts marked with ex will show the sites where our company filed a business commencement report. However, when we file a business commencement report, if we trust this part 100%, there are cases like this. We commonly refer to them as small-scale construction sites, which include small projects like 1 to 1.5 million won, or even smaller projects in tens of thousands of won. We do not report these small projects individually. Those that we did not report for business commencement do not appear on this screen. However, no matter how small the construction is, it could involve subcontractors. In that case, insurance premiums for the site must be paid without fail.

It means doable. So, to sum up, ignoring the parts marked with x, it is more accurate to analyze the original tool construction and the 2nd construction by referring not to this screen but to our sales transactions. Secondly, there is something you must trust 100% the part circled here. Why should you trust this part 100%? The fact that it is circled means that it has not been reported by me. It has not been reported by my own efforts. Then, who will take care of this? When we like what is attached to the back of the business license, who did it? When the business owner approves us at the original construction, they report it on behalf of us. Briefly explaining about the subcontractor, the subcontractor's responsibility.

To be recognized as a contractor, several requirements are necessary. The first is the agreement or contract for the payment and acceptance of insurance premiums for workplace compensation and occupational health and safety insurance. Since employment insurance is included here, this site will be the main contractor, and we will be the subcontractor. Separate from the main construction contract, a payment and acceptance contract for employment insurance premiums must exist. Secondly, within 32 days from the commencement date of the construction, a contractor recognition approval application form from the Labor Welfare Corporation in charge of the site must be completed and submitted. It must be submitted within 30 days. If you submit it promptly, the Corporation will review the contents and grant approval. Therefore, whether it is employment insurance or occupational health and safety insurance, it must be attached to the subcontractor's contractor recognition approval. If you look at the letter, it states employment insurance or occupational health and safety insurance subcontractor contractor recognition approval. This is the framework of the subcontractor's construction project.

As a scale business owner, the insurance premiums are paid by the business owner, so as business owners, we help each other, which is recognized by the government. We agreed on this and submitted it to the Labor Welfare Corporation for approval within 30 days from the start date. We obtained approval from the Corporation. Simply put, by recognizing the agreement between the subcontractor and the business owner as a business owner, we obtained approval from the Corporation. This is called subcontractor business owner recognition approval. As you can see in this situation, the recognition and approval of the business owner for employment insurance and industrial accident insurance cannot be achieved by oneself alone. Like in the case of the Government's recognition, mutual assistance must be provided. So, in cases like this, even if you say you have paid employment insurance, there are many questions about indirect employment insurance that we need to clarify.

Then, if we were to be investigated, and we said we couldn't pay because we didn't receive any funds from the public agency, what would the public agency say? Oh, we didn't receive any funds, so we don't have to pay insurance premiums. Would they say we don't need to pay? No, the approval process has been completed properly, so whether you receive the money or not, it's up to the prime contractor and subcontractors to handle it in a civil manner. Therefore, those sites mentioned here cannot avoid paying the money. Even if we paid the insurance premiums, we only received a small portion, but we don't go into details about this. You must always remember that as a business owner, you are responsible. Another important point among the contents that say we trust 100% is that we definitely received employment insurance premiums indirectly from the original tool manufacturer.

Oh my, I received the hometown insurance premium through the complete payment certificate via the payment proof of payment. Even if there are no such things, there are companies that provide it. Anyway, I received it, but it's not here. Clearly, the content is about receiving employment insurance premiums and even writing a mutual agreement, but it's not shown here. What could be the reason? If the original requester does not submit the application for recognition as an employer within 30 days, it means failing to meet the requirements. This is probably related to the construction site where the money was received, but if it is not reported to the original office after the 31st or if it was missed or forgotten, it was not fulfilled. What should we do if the application for recognition as an employer is not approved? Even if we received a lot of money, we have no payment responsibility towards the chairman. On the contrary, please ask this kind of question: Even if there is no payment responsibility, there is a relationship with the original country, so even if we don't pay, is there any way we can pay?

In conclusion, there is no way for us to submit it tomorrow. The remaining money can just be used for miscellaneous expenses. For example, if you ask for a refund, it can be refunded. This is a completely separate issue from the normal insurance premiums, so you should understand that. Therefore, when it comes to the obligation to pay for charitable reinsurance, it is stated that Japan should do it. Well, Japan and industrial accident insurance are included, so it is natural to pay. However, if you try to do it with Number 0, even though industrial accident insurance is included, it is not. Why is that? Let's take a look at the side. It says canceled by Songrim. We thought it was for our own benefit, but it turns out that it was a subsidy received from the comprehensive construction by the public office. So, belatedly, we contacted the Korea Workers' Compensation and Welfare Service, received rejection, and canceled the establishment. Therefore, if it has been canceled, you should understand that there is no obligation to pay.

Let's move on to employment insurance. When it comes to employment insurance, it says 1345. Let's look at it together. First, because it's Wonduk-eup, of course, we have to pay all the employment and industrial accident insurance. Also, since the contract with Ayoung is canceled, it's natural not to do it or pay a lower amount. This time it's about employment, but why is there no obligation to pay? Let's take a look together. Oh, there are no changes in the number of workers on site, and a huge construction started on April 4, 2018. What kind of construction is it? In December 2019, another project was completed, so the year we are currently looking at is 2020. Of course, although the project may be extended or expanded, it may differ slightly from what is stated in the status of affairs. Sales may occur in February 2020, but at this educational time, I would like to explain a little bit from home to help you understand.

In any case, we can see that as of December 30, 19 years, the construction was completed, so there was no revenue generated in 2020. Therefore, we can understand that it is missing twice in employment insurance in 2020. Then, coming down to number 5, there is no number 6. What could be the issue with number 6? Let's take another look. It says it's from the ancient times. Oh, they started construction in 2021. We are calculating insurance premiums now, so you don't need to worry about anything before January 2020. Therefore, for the sites that need to pay workers' compensation insurance based on 2020, they should pay employment insurance for numbers 1, 3, 4, and 5. Uh, uh.

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건설 4대보험 관리
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건설노무관리

Guidelines for Paying Employment and Industrial Accident Insurance Premiums

The responsibility for paying insurance premiums lies with the principal contractor, but subcontractors can also handle this.

To calculate insurance premiums for subcontracting or construction sites, the sales record, judgment, and construction cost estimate sheet can be used.

When accessing the payment information, it's important to be cautious and only click on the specific areas required, avoiding unnecessary actions.

It's crucial to accurately set the start date of construction, especially when calculating insurance premiums for a specific year, such as 2020.

Inconsistent Insurance Premium Calculations

The current method of calculating insurance premiums has a significant risk of missing relevant construction sites.

There is a need to carefully review the start dates of construction to avoid potential investigation and collection issues.

The approval of sewer recipients is crucial for determining the status of a business and its compliance with employment and workers' compensation insurance.

Clarifying Insurance Premium Responsibilities for Construction Sites

Construction sites with a circle indicate a connection to public institutions and require insurance premium payments.

Ignoring the parts marked with an x is recommended, as they typically represent small-scale construction sites that may still require insurance payments due to subcontractor involvement.

The circled parts, on the other hand, indicate areas that have not been reported and are the responsibility of the business owner for insurance premium reporting.

Contractor recognition requires a payment and acceptance of insurance premiums for workplace compensation and occupational health and safety insurance.

A contractor recognition approval application form must be submitted to the Labor Welfare Corporation within 32 days of construction commencement.

The approval process requires mutual assistance between the prime contractor and subcontractors for the payment of insurance premiums, regardless of whether funds are received.

Unclear Insurance Premiums and Payment Obligations

The text discusses the receipt of insurance premiums and the obligation to pay as an employer.

If the application for recognition as an employer is not approved, there may be no payment responsibility.

The cancellation of the establishment can result in no obligation to pay the insurance premiums.

Unpaid Employment Insurance for Construction Company

The company is questioning the obligation to pay employment insurance due to a canceled contract and no revenue in 2020.

A huge construction project that started in April 2018 may have affected the number of on-site workers.

The completion of another project in December 2019 has led to a lack of revenue in 2020, raising concerns about unpaid insurance.