Misleading Service Fee

Ertan S · Jun 30, 2016 01:23:09 AM

Vladimir G · Jun 30, 2016 01:51:26 AM

Hi Ertan,

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.

350-20%=280

Petra R · Jun 30, 2016 02:39:54 AM

There is something wrong with your maths

@Ertan S wrote:

How is 350 minus 20% NOT 280?

contract value $ 350

20% of 350 is 70

$ 350 minus $ 70 is $ 280

Teri S · Jun 30, 2016 02:40:02 AM

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 · Jun 30, 2016 03:20:51 AM

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.

Teri S · Jun 30, 2016 04:10:22 AM

@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.