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

Sarvar M · Feb 2, 2020 07:55:58 AM

Preston H · Feb 2, 2020 08:25:36 AM

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?

Aleksandar D · Feb 2, 2020 08:30:52 AM

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

Jason B · Feb 2, 2020 02:13:09 PM

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?

Preston H · Feb 2, 2020 02:50:36 PM

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.

Wes C · Feb 2, 2020 02:50:38 PM

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.

Jason B · Feb 2, 2020 02:51:35 PM

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