UpWork service fees.

[ec2c3400]

Recently, Upwork has changed the size of the service fees and applies floating fees.

These are BOT responses from UpWork support.

BOT: Freelancers pay a sliding fee based on lifetime billings with each client. The fees are the same whether the contracts are hourly or fixed-price and apply to bonus payments.
BOT: Here's how freelancer fees work:
BOT: - 20% for the first $500 you bill a client across all contracts with them - 10% for total billings with a client between $500.01 and $10,000 - 5% for total billings with a client that exceed $10,000

Why is there a 20% charge applied on my last payment for a completed Project of $ 505?

Also, I have an ongoing Project worth more than $ 1000 and UpWork again applies a 20% fee. Please explain to me why, when choosing a Fixed Price Project, you show that you have floating fees, and when you receive money as a Freelancer, you apply 20% on any amount.

[prestonhunter]

Yes, this is all working as intended. The fees are all calculated automatically. You don't need to do anything to ensure that it's done correctly.

A $1000 fixed-price contract with a brand-new client?

Your fee will be 20% for $500 and 10% for earnings above $500.

[ec2c3400]

I have a $ 505 bill paid today. Check, please.

I know that up to $ 500.1 you charge a 20% fee. I have $ 505.
Yes, 1500 USD is a new Client contract created on 05/07/2021. Check, please.

[prestonhunter]

Your screenshot confirms that everything is being calculated correctly.

You posted earnings of $505

20% of 505 is $101

But your fee wasn't $101

It was $100.50

So we can see that you paid 20% for the first $500 and 10% for what you earned above $500.

[ec2c3400]

Now I understand what you think.
On the Projects page, this calculation method is not clearly indicated and is misleading. I understood that when paying up to $ 500, the fees are 20%, and over $ 500.1 - 10%. Exactly as indicated.

[prestonhunter]

https://support.upwork.com/hc/en-us/articles/211062538-Freelancer-Service-Fees

As a freelancer, you’re charged a sliding fee based on your lifetime billings with each non-Enterprise client. This includes all contracts you’ve ever had with that client...

• $0-$500: 20%
• $500.01-$10,000: 10%
• $10,000.01 or more: 5%

Example: On a $600 project with a new client, a freelancer’s service fee would be 20% on the first $500 and 10% on the remaining $100

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I'm sorry that you find the current version unclear or misleading. Please go ahead and reword that in a way that makes more sense to you. Post your re-worked version in this thread.

[ec2c3400]

I don’t know how to put it right, but it doesn’t look like sliding fees. This is more like a progressive income fee (like a progressive tax rate). Maybe you should give an example as you did in your post, but I'm not sure. Thanks for the clarification.

[european74]

I pay 27% commision for the first $500 I bill a client. It includes VAT. I cannot get back any VAT tax because I am not registered VAT payer.