I'm sorry, but there seems to be some confusion with the way service fee is being calculated. To clarify, the fee is applied on the total amount billed for the contract. Please check my calculation below and let me know if you receive a different result.
The 20% is calculated on what the client pays, not on what you get.
Or rather, legally you earn the full $350 as gross income and then you pay 20% for Upwork's services (as a deductible expense), giving you $280 in net income.
350 * 20 % = $70
350 - 70 = $280
@Craig A wrote:
I have no idea how you calculated 25%.
I always thought I was pretty good at math. Clearly I've been doing it wrong all these years.
70 is 25% of the 280.
VAT in Sweden is 25% so I'm used to calculating plus 25% and minus 20% in VAT calculations for VAT paid/due.