5% Client Marketplace Fee on top of fixed price contract price?

[charles_libor]

Hi there I am looking at using Upwork for the first time as a client and would like a little clarity on the service fees.

I am a little confused by the 5% Client Marketplace Fee, I always thought that the only fee which needs to be paid was by the freelancer not by the client. So does this mean that as a client I must pay 5% in additon to the price of the fixed price contract set by the freelancer. Or does it mean that 5% of whatever I pay will contribute to the 10% fees which the freelancer pays and therefore I still only pay the total of the contract fee alone? To help make this a ltitle clearer I have given a scenario with 2 options for how this fee could be applied in order to work out which one is true and which is false:

The Example Scenario: I am a client who has been proposed a $1000 fixed price contract by a freelancer and my total charge will be:

A) The total I must pay as a client is:  $1045.95 = $1000 to Upwork including the freelancers 10% fees (which is deducted on their end from the $1000 payment) +  $4.95 for an iniation fee + $50 for a 5% Client Marketplace Fee

Or 

B) The total I must pay as a client is:  $1005.95= $1000 to Upwork including the freelancers 10% fees (which in itself includes the 5% Client Marketplace Fee which I have paid) + $4.95 for an initiation fee

I am just trying to workout how much I will actually need to pay in reality for a fixed price contract set at a certain price after all the fees have been applied ontop of this. Any guidence as to whether A or B are correct would be much apprecaited! Thanks!

[f02fcd59]

A is right 

[charles_libor]

Thank you Ayesha

[williamtcooper]

Charles,

$1,000 + $50 + $4.95 = $1,054.95. None of the above.

[069cc2a0]

Yes William is correct:

$1,000 + $50 + $4.95 = $1,054.95. None of the above.

Then your freelancer will pay, 10% of his or her $1000 ($100) + 20% of that for Upwork's VAT ($20).

The freelancer will be left with $880.

[4695e8e3]

i can not beleive you pay so much to them and they pay us so little.