Agency account - fee, taxes, payment

[nadiiamanager]

Hi,
Could you, please, describe what benefits will I get if I activate Agency account:
- how do I and my team is billed?
- can I track my team's effort and performance?
- how taxes and fees are subtracted?
- what size of taxes and fees should I and my team pay in case of Agency account?

I've looked for this info but I couldn't find it.

Thank you

[MichaelJ · Accepted solution]

Hi Nadia,

Thank you for your questions!

• When an agency is hired, all payments go to the agency owner. The agency owner must then pay their team members outside of Upwork.
• For hourly contracts, you will have access to your team's work diaries to track the work they've completed.
• Agencies are subject to the same service fees as freelancers. You will also need to enroll in the Agency Plus membership in order to add team members to your agency.
• The only taxes collected by Upwork is the Value Added Tax (VAT)  required by some countries. All other taxes are your responsibility to report and pay in accordance with your local laws.

I hope you find this information helpful. You can find more information under the "I'm an Agency" tab in the Upwork Help Center.

Thank you,

Mike

[faisalyosufi]

Hi Mike

I have an agency account so if I billed more than 10k to a client, will this enable me to pay 10% and 5% fee to Upwork?

Please guide.

Thanks

[BojanS]

Hi Faisal,

We calculate agency service fees based on total agency billings with a client across all contracts. This means that all agency contracts that any of the agency’s freelancers have had with a single client count towards an agency’s lifetime billings with that client.

An agency freelancer's non-agency contracts with a client, whether as a non-exclusive independent or prior to joining the agency, will not count towards the agency's lifetime billings with that client.

Thank you!

[faisalyosufi]

Hey Bojan
Let's say we have earned 10k+ with one client, so how much Upwork fee will be deducted?

Thanks

[BojanS]

Hi Faisal,

Once you earn $10,000.01 or more with one client's company your service fees would be reduced to 5%.

Thank you!

[evasawebstudio]

Hi, 

I have an agency and want to submit proposals from my agency account, I provided all tax information and also the business card information of my **Edited for Community Guidelines**. I want to know why should I still pay upwork fee. Are there documents necessary to attach concerning my LLC taxes? I am able to provide all needed documents.

[AleksandarD]

Hi Ashot,

Are you referring to the service fees? If so, then yes, you'll be charged as agencies working with non-Enterprise clients are subject to the same pricing structure as freelancers.

• $0-$500: 20%
• $500.01-$10,000: 10%
• $10,000.01 or more: 5%

Thank you.

[4ed9401a]

Hi dear,

One of my friend as been Hired by the client on this job link 👉  **Edited for Community Guidelines**

But the client ask to my friend to pay 40 dollars for him before he started working.  Is it normal?

Isn't not supposed to be the client that has to paid to my friend after he completes the job?

Please just enlight me a bit and if you can invest on that client, that will be nice.

Thanks!

[LuiggiR]

Hi Lothin,

Thanks for reaching out and bringing this to our attention. Please note that clients should never request any type of payment from a freelancer. I have forwarded the job post you shared to the appropriate team so they can review it and take action. Please take a look at these tips to avoid questionable jobs, as well as the top red flags for scams shared by one of our Community members, for more information on how you stay safe on Upwork.