Year-End Health Insurance Premium Settlement for Employees to Be Automatically Processed Using National Tax Service Data

All 2.03 Million Workplaces Linked Electronically via Simplified Wage Payment Statement
Without Separate Employer Reporting

The National Health Insurance Service announced on January 19 that, starting this year, all 2.03 million workplaces will have their year-end health insurance premium settlements for employee subscribers automatically processed without the need for separate reporting.

Previously, each workplace was required to report the total annual compensation of its employees for the year-end settlement of health insurance premiums. Through this process, employees whose income increased in the previous year paid additional premiums, while those whose income decreased received refunds for overpaid premiums.

This process was separate from the year-end tax settlement for earned income submitted to the National Tax Service, effectively requiring workplaces to report the same information twice. However, with the revision of the Enforcement Decree of the National Health Insurance Act last year, related procedures have been significantly improved.

Since last year, the National Health Insurance Service has eliminated the requirement for workplaces to separately report the year-end settlement of employee health insurance premiums, but continued to use the previous method in parallel to ensure stable operation during the initial phase of system improvement.

This year, to enhance convenience for workplaces, the year-end settlement will first be processed using the simplified wage payment statement submitted to the National Tax Service. Additional reports will only be accepted from workplaces that require corrections.

As a result, workplaces that have submitted the simplified wage payment statement to the National Tax Service will have their year-end health insurance premium settlements automatically processed by the National Health Insurance Service, greatly reducing their administrative burden.

However, if a workplace has not submitted the simplified wage payment statement for earned income to the National Tax Service, or does not wish to use the automatic settlement, it must submit an 'Application for Exclusion from Simplified Wage Payment Statement Linked Settlement' to the National Health Insurance Service by the end of this month.