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Should US tax be paid by US Agency even when the part of money would be sent to non-US freelancer?

chertash_alena
Active Member
Alena C Member Since: Feb 15, 2017
1 of 5

I am a Europe freelancer, who work in US agency. When my client pay 100 dollars to my agency, will this amount be under US taxes, so that I receive only 70 dollars?

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
2 of 5

If your client hires you through an agency the agency (!) receives $ 80 ($100 minus the Upwork fee) and then the agency takes their cut and pays you outside of Upwork. Taxes are a different matter and the agency will have to pay US taxes and you have to pay your own country's taxes from what you are paid in your own country.

 

 

chertash_alena
Active Member
Alena C Member Since: Feb 15, 2017
3 of 5

Thank you for your reply. But I still don't get it. Will be agency able to send me $ 80 ($100 minus the Upwork fee)?  The reason I ask that I know that US freelancers receive payment - US taxes automatically. So that I am afraid that my US agency will be charged Upforw fee + US taxes =  $ 50.  

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
4 of 5

@Alena C wrote:

  The reason I ask that I know that US freelancers receive payment - US taxes automatically.


 No, they don't.

US freelancers receive their earnings the same as European ones. US freelancers and US agencies have to report their own taxes to the IRS.

 

chertash_alena
Active Member
Alena C Member Since: Feb 15, 2017
5 of 5

Thank you!

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