I have just read the terms of hourly contracts payment and haven't got the following info:
- When the contract begins, we invoice a percentage of the total weekly amount based on the day the contract began:
- Monday – 100%
- Tuesday – 80%
- Wednesday – 60%
- Thursday - 40%
- Friday, Saturday, Sunday – 20%
- When the contract ends, we invoice a percentage of the total weekly amount based on the day the contract ends:
- Monday – 20%
- Tuesday – 40%
- Wednesday – 60%
- Thursday - 80%
- Friday, Saturday, Sunday – 100%
Does it matter that Upwork takes my money beyond retrieve as an interest? If so, why the amount they take differs depending on the day of a week?
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I am talking about the manual named "Pay for hourly contracts" from Upwork support. And I put down the part I don't understand. Even if we apply it to additional weekly payment, it still doesn't make any sense for me.
Okay... I found where you got this:
If you aren't going to pay freelancers a weekly retainer, then you can ignore this. It has nothing to do with you.
I can DEFINITELY see how the formatting of the page makes this confusing, though.
You copied-and-pasted a section that simply explains the pro-rating of Recurring Additional Weekly Billing. It's just mathematical pro-rating for mid-week contract starts or mid-week contrat ends. Nothing more. You'd find the same calculations anywhere.
It has nothing to do with hourly contracts. Don't worry about it.
The reason this material is confusing is because it is presented on a page headlined "Pay for Hourly Contracts."
But "Pay for Hourly Contracts" is a broader heading that encampasses multiple sub-topics.
One of those sub-topics can be summarized thus:
"What if... in ADDITION to paying freelancers on an hourly basis... I would ALSO like to pay them a fixed amount each week... an amount NOT TIED to any particular work that they do. If you do that, the amount you pay each week will be pro-rated based on what day of the week you start or stop the contract.
This has nothing to do with interest.
This is just meant as a way to not over-charge the client. If client doesn't have a weekly-auto-pay contract open for a freelancer for a full week, then the client does not need to pay a full week's rate.
So the client saves money.