Last year the Trust and Safety team committed to sharing updates to increase transparency and promote an open discussion about our work. Our goal is to focus our updates on topics that matter most to you. In this update, we are taking the opportunity to discuss using generative artificial intelligence (AI) on Upwork.

We are excited about the possibilities of generative AI! At this time, Upwork does not expressly encourage or prohibit the use of AI; how you work and the tools you choose to use are for you and your clients to discuss. Like these tools, our guidelines are evolving. Learn more

We’re so grateful to our Community and excited for what the new year will bring. Things will be quieter in the Community over the next couple of weeks, but know that we’re still here to support you. 

We’re posting to let you know about a few recent updates to our Terms of Service, specifically our Privacy Policy and Fixed Price Escrow Instructions. 

Starting in mid-December, Upwork is required by law to begin collecting sales tax on various fees we charge to freelancers in certain US states. All collected taxes will be passed on to each freelancer’s state government. We emailed all who may be subject to these tax laws.

To comply with state and local law, Upwork will begin to collect and remit applicable sales and use taxes from clients starting in mid-December. We emailed all who may be subject to these tax laws.

Upwork is required by the U.S. Internal Revenue Service (IRS) to ensure that international freelancers fill out a new W-8BEN or W-8BEN-E form and that it has their tax identification number and current tax residence listed.

Today, we have launched a new global navigation and corresponding dropdown menus within Community. 

It’s here! It’s live! And it’s ready for your viewing pleasure! Come say hello.

Updated January 4, 2023

On December 23, the Internal Revenue Service (IRS) postponed new tax-reporting requirements for U.S. citizens for one year. This action delays a new law requiring e-commerce platforms such as Upwork to provide IRS information on users with more than $600 in revenue.

What this means for you: Given the delay, Upwork will continue to report form 1099-K if you are a U.S. person receiving at least $20,000 in payments from your clients on Upwork in 2022 that included 200 or more transactions.

Upwork vs. Paypal 1099-K: If customers withdrew their earnings from Upwork into Paypal, they will not see those earnings on their Upwork 1099-K; this is only for the 1099-Ks that went out for the 2022 tax year. Since Paypal now reports on these earnings, Upwork leaves them out of our 1099-K to avoid the appearance of double earnings. Customers can find these earnings in their Paypal 1099-K.

We have updated our Hourly, Bonus, and Expense Payment Agreement with Escrow Instructions to clarify one of the criteria that must be met to qualify for Hourly Payment Protection. 

Over the last year, we have seen the Upwork Community engage and grow like never before. You have literally helped us take off! But one thing missing has been — a true way to celebrate our members. 

Many US states now require businesses like Upwork to collect and remit marketplace facilitator sales tax when sales are made from purchasers who are located in particular states. This tax will only be assessed on the payments clients make to freelancers.

Upwork is building with Enterprises in mind and enabling new ways to work with our full-service solution.

We will soon be removing the Upwork Readiness as a requirement for the Rising Talent Badge and from the platform in general.

Texas is one of many US states that now require marketplace businesses like Upwork to collect and remit marketplace facilitator sales tax when sales are made from purchasers who are located in the state.

We are building a career library to showcase the different paths people took to get to where they are. Whether you are a business owner, a freelancer, full-time, part-time–and everything in between–we’d love your help. You never know who your story will impact or who may impact yours! 

We are thrilled to announce that on April 29, Upwork Academy–a learning space that supports customers as they build their businesses–published six new on-demand courses.

On April 14, we are launching a new partnership with Klaviyo, an email and SMS marketing platform. This partnership offers freelancers another opportunity to market their services to clients and also helps clients connect with successful freelancers.