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Why are expenses subject to fees the same as bonus

6d27ffdb
Active Member
Toby B Member Since: Jun 18, 2019
1 of 45

I don't see why an expense reimbursement should be subject to the same fees as a bonus or salary payment. 20% seems obscene.

Surely an expense reimbursement should be charged at: expense + cost of bank fees + small admin fee?

 

Thanks

 

 

 

emiguelina
Community Guru
Elba A Member Since: Feb 28, 2017
2 of 45

Toby B wrote:

I don't see why an expense reimbursement should be subject to the same fees as a bonus or salary payment. 20% seems obscene.

Surely an expense reimbursement should be charged at: expense + cost of bank fees + small admin fee?


Otherwise, It will be subject to be abused.

martina_plaschka
Community Guru
Martina P Member Since: Jul 11, 2018
3 of 45

Toby B wrote:

I don't see why an expense reimbursement should be subject to the same fees as a bonus or salary payment. 20% seems obscene.

Surely an expense reimbursement should be charged at: expense + cost of bank fees + small admin fee?

 

Thanks

 

 

 


Yes that's not ideal. You could find other ways to deal with expenses, such as giving the freelancer access to a payment method or paying them from your end as required. 

6d27ffdb
Active Member
Toby B Member Since: Jun 18, 2019
4 of 45
Is that allowable under the contract? If so then upwork shouldn’t advertise
expense payments as being different from bonus. I expected it to be handled
differently. Otherwise why ask the question in the UI?

Also for a small payment it’s a bit of a hassle getting the freelancer bank
details etc
emiguelina
Community Guru
Elba A Member Since: Feb 28, 2017
5 of 45

Toby B wrote:
Also for a small payment it’s a bit of a hassle getting the freelancer bank details etc

You can not do that, you both can be suspended.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
6 of 45
Toby, as a fundamentally honest person, you did not even realize that there are dishonest freelancers who would pressure their clients to pay all of their money through "expenses. In order to avoid paying fees. So a $100 project for graphic design would end up being a $5.00 fixed price payment, and a $95.00 expense payment.
prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
7 of 45

In order to avoid having Upwork take out 20% from expense reimbursements, clients purchase the materials needed and send them directly to the freelancers. OR clients provide the freelancers with a company card or account for making purchases. For example, clients may provide freelancers with FedEx account numbers for doing shipping. OR clients pay feelancers a high enough hourly rate or fixed-price payment that freelancers can pay for needed expenses on their own. To answer your question: Yes, all of these options ARE allowable under Upwork's default contract and TOS.

sacrenow
Active Member
Jacob W Member Since: Dec 24, 2020
8 of 45

Another lesser change that they could make would be to let the client choose to pay the fee.

 

--Jacob

6d27ffdb
Active Member
Toby B Member Since: Jun 18, 2019
9 of 45

I understand that but if avoiding abuse is the issue then why bother differentiating the two types of payment if the net result is the same.

 

I had an option to choose bonus or expense. I assumed I would pay fees on bonus but not on expense as that's usual business practice with taxes and so on.

 

If they are treated the same then upwork shouldn’t waste our time asking for unnecessary and therefore confusing information. There should be separate clear guidance explaining how to handle reimbursement of expenses.

 

To keep all finances on upwork then they could offer an expense handling system where freelancer submits the expense receipt and upwork then bills us as clients. That would prevent abuse.

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
10 of 45

Hi Toby,

 

I see you've received great advice here on the thread and I'll ask our team to follow up with you directly in order to provide more information about issuing payments on Upwork .

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