Tax On Earnings

[katlego09]

Good day. I'm new to Upwork. I recently landed my first job and I am yet to receive my earnings. I'm currently trying to sort out my Tax Indentification Number and I'm worried that it may not be fixed by the time I receive my earnings. Will Upwork charge the 30% tax on my earnings before they give them to me (while I'm still trying to sort out my tax documents) ?

[spectralua]

No, Upwork won't handle your taxes. It is your responsiblity. You will receive your income without Upwork fee then must calculate and pay taxes yourself.

[katlego09]

Okay. Kindly explain where and how the 30% gets involved in everything.

[spectralua]

30 is your local tax?

You have contract for 100. Upwork take own 20%, some withdrawn fee, connects, you will receive for example 60 with money. Then you must pay 30% tax, it is $18 from $60 to your goverment. I have no idea how you can do it, local tax consultant needed.

[katlego09]

The attached screenshot is where I got the 30% from. My initial question was; will Upwork take the 30% as it states on the screenshot from my earnings while I'm still fixing my W-8BEN/W

 

-8BEN-8 Forms?

[6bfcdaf8 · Accepted solution]

If you can not fill out this form yes upwork will deduct %30. Check with your local accountant, forexample here the tax id number for individuals is our id number. You don't need to have a corporation to pay taxes. 

[katlego09]

I see. Thank you.

[cf61f25a]

Hi when will upwork deduct the 30% since my TIN ID is still processing. Do they deducy it when my earnings becomes available or when I got a new payment from clients? 

[LuiggiR]

Hi Kreala,

The 30% is withheld from your earnings, not your withdrawals. You will need to provide your complete Tax Information before you can withdraw your earnings. You can read this help article for more information.

[tom_l]

Hi Mykola,

Your information is not up to date. 
1. Upwork only takes 10% now.
2. Upwork will take 30% of earnings if freelancers have not completed their W-8BEN/W forms.

[spectralua]

Did you saw date of my post? Apr 6!