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Misleading Service Fee

ertansaygi
Active Member
Ertan S Member Since: Jun 30, 2016
1 of 6

13585013_10153895028918795_2163502127220604897_o.jpg

vladag
Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
2 of 6

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
Community Guru
Petra R Member Since: Aug 3, 2011
3 of 6

There is something wrong with your maths


@Ertan S wrote:

13585013_10153895028918795_2163502127220604897_o.jpg


 How is 350 minus 20% NOT 280?

 

contract value $ 350

20% of 350 is 70

$ 350 minus $ 70 is $ 280

tamsandstedt
Community Leader
Teri S Member Since: Oct 17, 2011
4 of 6

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

yowiedesign
Community Guru
Craig A Member Since: Jan 18, 2016
5 of 6

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.

tamsandstedt
Community Leader
Teri S Member Since: Oct 17, 2011
6 of 6

@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.

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