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Service Fee in Hourly????

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Active Member
Jayson R Member Since: Jun 27, 2015
1 of 6

What is this service fee in hourly and why we freelancers are the one who gets the deduction?? We worked hard to meet the hours expected and we worked hard for the money we earned for those hours and why Upwork is deducting for a service fee?? isn't it Upwork should get the service fee from the client and not us freelancers?? Upwork already taking a money when we're witdhrawing the money and still Upwork is taking the money from the money we earned from these hours.

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Community Guru
Abdul R Member Since: Dec 4, 2014
2 of 6

We do not pay any hourly service fee. Why it looks like this that we pay?

 

After Upwork changing, Now it shows hourly rate including upwork fee in your profile. It was not in the past. Clients pay the Up Work fee. 

 

You can you apply in your own hourly rate and calculate your amount accordingly. There will be no fee in it. 

 

 

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Community Guru
Preston H Member Since: Nov 24, 2014
3 of 6
Jayson, you have logged nearly 1000 hours working on Upwork.

I don't understand your question. You already know how Upwork functions. Nothing has changed recently. Except the name. What are you referring to?

If you are concerned about the survey... Then keep in mind (a) it was only a survey, not a change in policy, and (b) the survey alludes to no new fees; it alludes to a change in the percentage rate of some (not all) fees.

Upwork made an announcement recently about taxes and deduction and such. Who knows why they made an announcement like that. Maybe because people pestered them with questions. But they have not actually changed anything, and neither you nor I are obligated to change how we do things with regards to taxes just because Upwork clarified its position about something.

Upwork making a statement about deductions does not equate a change to my earnings.

Anyway, if I were to count my Upwork earnings including the ten percent fee and then count the fee as a deduction, or if I were to only count my earnings after the fee and claim no deduction, the net result would be identical. I am so speaking as a U.S. resident, of course... I have no idea how things work for other places, nor do I have any idea how things work for other people in the U.S. And, of course, keep in mind that independent contractors' earnings are not necessarily income, but may be business-to-business expenses and transactions. Upwork has proferred an official position from their perspective. That is all. They are not going to file or pay people's taxes for them, and they have no way of issuing a single blanket statement about how everybody worldwide, or even throughout the United States would need to file in order to do so properly. Even the IRS can not issue such statements, because people's situations differ and each individual has many options with regards to how to do business, incorporate, choose from multiple allowable filing forms and options, etc.

So... Whatever it is you're worried about... Don't worry about it. Nothing has changed.
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Active Member
Jayson R Member Since: Jun 27, 2015
4 of 6

Thanks for the reply. I now understand. 

 

Upwork just made some changes how to deduct these fees and I think it started last mid of febraruary (upon checking my transaction histories)

 

My last hourly work was - $7 an hour (Feb) and "oDesk" initiated $6.3 that's because "oDesk" is taking %10 of my $7 an hour rate.

 

I just got hired again this June with $5.56 an hour rate and one "Review" is finished, "Upwork" will now take %10 from my total earnings.  e.g. 166.8 (30hours) - %10 = $150.12

 

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Ace Contributor
Jaime L Member Since: May 11, 2015
5 of 6

Jayson,

 

The money IS coming from the client. It is being withdrawn from the client's bank account/credit card/whatever, and not the freelancer's. Your hourly rate on your profile includes the service fee. At the end of the work week, Upwork deducts 10% of the money earned for that week.

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Moderator
Valeria K Moderator Member Since: Mar 6, 2014
6 of 6

Hi Jayson,

 

We only have recently changed the way the Service Fee is displayed in freelancer Reports. You can refer to this announcement for more information.

~ Valeria
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