If you are a small business, freelancer, or small business owner, you have probably heard of the Yellow Umbrella Mutual Aid Association. If you are unfamiliar with it, it is a good system to know if you are a small business, small business owner, or freelancer. If you don’t know, you’ll miss out on these benefits. Let’s take a look at what the Yellow Umbrella Mutual Aid Association is, benefits, and how to join.
Conditions for joining the Yellow Umbrella Mutual Aid Association, pros and cons
index
– What is the Yellow Umbrella Deduction?
– Features of yellow umbrella deduction
– Disadvantages of yellow umbrella deduction
– Eligible to join the yellow umbrella deduction
– How to join the yellow umbrella deduction
What is Yellow Umbrella Deduction?
This is a deduction system for employers’ retirement pay (to raise money), which is operated so that small businesses and small business owners can secure their livelihood from threats to livelihood, such as closure of business or old age, and receive opportunities for business revival. In general companies, you can receive severance pay when you leave, but ordinary self-employed people do not have such a concept. You can think of it as a severance pay system for small business owners and small businesses. You can pay up to 5,000-70,000 won in monthly installments.
Yellow Umbrella Deduction Features 노란우산공제 가입조건
1. Protection of the right to receive deductibles 좋은뉴스
Seizure, transfer, and provision of collateral for deductibles are prohibited by law. Therefore, it can be safely used as a fund for life stability and business recovery.
2. Income deduction of up to 5 million won per year
In addition to the existing income deduction products, an additional income deduction of up to KRW 5 million per year is possible for the amount paid.
3. Raise a lot of money
The full amount of the paid-in principal is accumulated and compound interest is applied. So, you can get your money back in the form of a lump sum or installments when the business is closed.
4. Utilization of funds through mutual aid contract loans (loans within installments)
Within 90% of the voluntary cancellation refund, the loan period can be extended for one year (extension is possible) and interest is 2.8%. However, this is possible only if the deductible payment is not overdue.
5. Get free accident insurance
In case of disability or death due to injury, up to 150 times the maximum monthly payment amount for 2 years is paid, and the insurance premium is borne by the Korea Federation of Small and Medium Businesses.
Disadvantages of yellow umbrella deduction
Yellow Umbrella Mutual Aid Association has a small amount of cancellation refund when voluntary (mid-term) cancellation. Due to the cancellation refund policy, if you cancel before 12 months, you may lose the principal. To get a refund without losing the principal, you can receive the principal and compound interest only in case of business closure, old age (over 60), or death.
As mentioned above, if you think of it as a retirement benefit for a general office worker, there are more advantages than disadvantages, so you will be able to see more benefits by joining.
Eligible for yellow umbrella deduction
Anyone who is a sole proprietor or representative of a corporation that is a small business or small business owner can join. Please note that the average annual sales for each industry is 1 billion to 12 billion won or less, and there are industries that are restricted from joining.
Yellow umbrella subscription restrictions
– General entertainment pub business
– Budo entertainment bar business
– Danran pub business
– Ballroom, gambling, massage, not medical practice
In addition, business operators within one year of cancellation due to non-payment of payment or illegal receipt are also subject to subscription restrictions.
Freelancers who file global income tax with 3.3% withholding tax can also join.
Is it possible to sign up for multiple businesses at the same time?
You must select one business to join, and the selected business cannot be changed arbitrarily.
Can unregistered small business owners join?
A personal service provider who is not a registered business operator but can confirm the business fact can also join.
How to join the yellow umbrella deduction
After filling out the subscription form, designate a savings account for installment payment and pay the subscription fee (one-time installment) to complete the subscription normally. There are 5 ways to join the Yellow Umbrella Deduction.
1. Call center consultation
If you apply for consultation through the Integrated Call Center of the Korea Federation of Small and Medium Businesses (1666-9988), a professional counselor will guide you on how to join.
2. Visit the bank
You can sign up by visiting your nearest bank branch. The Yellow Umbrella Mutual Aid Association is handled by Kookmin, Enterprise, Nonghyup, Shinhan, Woori, Hana, Gyeongnam, Gwangju, Daegu, Busan, Jeonbuk, Jeju, Postal Business Headquarters, Saemaul Geumgo Federation, and Suhyup Federation. You can sign up at any bank.
3. Mutual Aid Counselor
A professional deduction counselor will personally visit you and guide you through the registration process.
4. Internet subscription
You can easily sign up after logging in with a public certificate. Application hours are available from 9 am to 10 pm on weekdays, excluding legal holidays and weekends.
Yellow Umbrella Deduction Subscription Website Guide 👈
5. Visit to the Korea Federation of SMEs
You can join by visiting the nearest office such as the headquarters of the Korea Federation of Small and Medium Businesses, regional headquarters, and branches. Check out the Yellow Umbrella Regional Headquarters in your area and visit.