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Re: Upwork is still taxing me 20% long after Reaching my $500 earned mark.

Active Member
Kire T Member Since: Mar 26, 2019
1 of 7
I need to get in contact with customer support but can’t find their email anywhere.

I have made $1k+ on Upwork and they are still charging me 20% in fees when they should only be charging me 10%. I would like to dispute every few or at least the most recent ones since I made the $500 earned mark.

I work really hard on this site and stay within the confines of what Upwork asks me to. I work this job from home and it is one of my only sources of income. Can someone help me deal with this?
Community Guru
Preston H Member Since: Nov 24, 2014
2 of 7

Kire:

It is after earning $500 per client that Upwork's freelancer fees go from 20% to 10%.

Community Guru
Preston H Member Since: Nov 24, 2014
3 of 7

re: "Upwork is still taxing me 20%..."

 

We do not want to use the word "tax" for this.

 

Upwork does not "tax" freelancers. Taxes are levied by governments.

 

Upwork collects "fees" on a percentage of freelancer earnings.

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Active Member
Kire T Member Since: Mar 26, 2019
4 of 7

It's really the same thing. The only difference is the source. It all equates to money being taken out of your pay. Don't think the terminology matters in that respect.

Community Guru
Petra R Member Since: Aug 3, 2011
BEST ANSWER
5 of 7

Kire T wrote:

I have made $1k+ on Upwork and they are still charging me 20% in fees when they should only be charging me 10%.

You have made $ 1k - but over 19 jobs with lots of different clients.

As Preston pointed out: The 10% apply once you've made $ 500 with any one client, and only for payments made by that client going forward.

 

Active Member
Kire T Member Since: Mar 26, 2019
6 of 7

Okay. I wasn't aware of that as per the descriptions online. Well, that's disappointing.

Community Guru
Bill H Member Since: Aug 18, 2017
7 of 7

Kire,

 

I regret that you are disappointed. You pay nothing until a client gives you money. To pay for a public listing, prospecting, contracting, billing and record keeping costs most small businesses about 25% of revenue. UW's 20% is a bargain.

 

You raise an interesting point, one that UW should consider once it starts making a profit. The "payments by client" price break for fees makes sense when most jobs are commodity services sold on price. When they are higher value-add, total revenue produced is a better way to set price break points.

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