Thanks for your interest in the Direct Contracts feature and your questions.
There is currently no limit for how many Direct Contracts you can initiate.
Since your client and you will only be using Upwork for payments, any Direct Contracts will not impact your Upwork reputation metrics like Job Success Score.
Hello, I have a question from the client's side, what will happen regarding taxes for the client? The client pays the direct contract (3.4% fee for me), and then the escrow is liberated, etc. and then if the clients need some sort of W9 form or other documents for his US company (for an audit or similar), how does it work with direct contracts?
obviously I'm no expert on the topic, I hope I explained myself
Thanks for your question, Andres.
In most cases U.S. freelancers—including those who earned more than $600—will not receive a Form 1099-MISC from Upwork or their clients. So if you classify your freelancer as an independent contractor, you don’t need to file a Form 1099-MISC for your payments to them through Upwork. While all freelancers submit their information for Form W-9 (U.S.-based) or Form W-8BEN (international) to Upwork, Upwork doesn’t send freelancers Form 1099-MISC, either. We do file a Form 1099-K when applicable (to freelancers who are U.S. Persons and receive over $20,000 with more than 200 transactions through Upwork).
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i've just started my first Direct Contract to see how it works but i don't think i will use it again cause it seems there are no real benefits for my profile since as soon as the project will be finished i can't get any feedback from the client; to be honest i think Upwork should improve it to make it more interesting for freelancer like me who are interested in continuing to work on the platform.
There a lot of clients that maybe will need 1 work only per year and it doesn't make sense (at least for me) for them to have a profile that they will use 1 time per year or maybe in their lifetime so a "Direct Contract" could be a good option; i don't think it is a good thing (and it is not an incentive for us as freelancers) that they can't leave us a feedback.
Keep in consideration to add this feature.
My first direct contract's client can't pass the Quick security check.
They have tried multiple times, requesting numerous codes, but we keep getting errors with the system.
Can support help me with this so we can get contracting done?
We checked and it looks like the client was able to validate the code. Are you and your client still experiencing issues with setting up the contract?