🐈
» Forums » Freelancers » Re: I am working with old my client. Why my t...
Page options
sarvaraka
Community Member

I am working with old my client. Why my tax is very big? Please fix it.

I am working with old my client. Why my tax is very big? Please fix it.

6 REPLIES 6
prestonhunter
Community Member

Sarvar: let's use the word "fee."

 

It will be less confusing. We can use the word "tax" to refer to money collected by governments. Upwork does not levy taxes, but it collects a percentage "fee" from the payments clients make to freelancers.

 

You believe that the fee being collected is too high.

 

The fee is 20% for the first $500 earned. 10% until $10,000. 5% after that.

 

How much have you earned with this client?

AleksandarD
Community Manager
Community Manager

Hi Sarvar,

 

Thanks for reaching out to us. I checked and it seems that all the calculations are correct. Please note that as a freelancer, you’re charged a sliding fee based on your lifetime billings with each non-Enterprise client. This includes all contracts you’ve ever had with that client. Service fees are the same whether the contracts are hourly or fixed-price.

  • $0-$500: 20%
  • $500.01-$10,000: 10%
  • $10,000.01 or more: 5%

Additionally, could you please send me a PM with more information regarding your report so that I can check and assist you further?

 

Thank you.

~ Aleksandar
Upwork

Is this fee decrease at the contract level, or does it go deeper?

 

Meaning, if I charged a single client $400 then $600 on the next contract, will only $100 of the last contract be charged 20% and 10% on the remaining $500?  Or will it only be after these contracts?

re: "Is this fee decrease at the contract level?"

 

No.

 

The fees are based on the total amount of money earned while working with a single client.

 

It doesn't matter if it is with one contract, or 10 contracts, or 100.


Jason B wrote:

 

Meaning, if I charged a single client $400 then $600 on the next contract, will only $100 of the last contract be charged 20% and 10% on the remaining $500?  


Yes - once you hit $500 for a client, even in the middle of a contract, the fee drops.

Very cool!  That will be funds I was not planning on having 🙂

Latest Articles
Featured Topics
Learning Paths