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Upwork’s New Service Fees - Rolled Out !!

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
321 of 326

@Chris M wrote:

 

 

Bottom line, if you want to go to the trouble if figuring out how much you paid in fees in a year and take that as a business EXPENSE but you only show on your INCOME, the actual amount of money you received (after the fees were taken out), you're going to be in big trouble with the IRS.

 


 Well, obviously. I'm quite sure there is no one on the planet competent enough to earn money freelancing who doesn't realize that you can't start with your net and then re-deduct the fees.

 

New question, though...people keeping talking about math and trouble and such...what's the hassle? Determining my gross income and total fees paid to Upwork in a year takes roughly 90 seconds. It's far less complicated than most of the other income and expenses I have to report.

chrismanley
Ace Contributor
Chris M Member Since: Jun 8, 2010
322 of 326

Yes, I'm sure there's a quick report I could generate with everything on it.  However, I have to track other income from other sources.  So I just keep a simple spreadsheet with actual cash income I receive from all of my clients and list actual expenditures separately.

Each to his own, I guess.

jcullinan
Community Guru
Jess C Member Since: Feb 18, 2015
323 of 326

Tiffany S wrote: 

New question, though...people keeping talking about math and trouble and such...what's the hassle? Determining my gross income and total fees paid to Upwork in a year takes roughly 90 seconds. It's far less complicated than most of the other income and expenses I have to report.


Considering the number of errors I've found in Upwork's overall reports, I'd rather not have to comb through them for accuracy, so I keep my own spreadsheet of actual money deposited and update it every week. Of course I check the weekly reports on the site to make sure they track with my timelogs, but I've given up on "earnings by client" and the "certificate of earnings." They're always off by a weird amount, and it's not worth it to track it down if I know the weekly numbers are correct.

 

But like I've said, either way of tracking comes out to the same amount reported to the IRS, so it's a wash as far as which you prefer.

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
324 of 326

That I agree with--I have definitely noticed odd discrepancies in the reporting.

aliesha-mcfarren
Active Member
Aliesha P Member Since: Feb 13, 2018
325 of 326

20% Is highway robbery. Especially since the client is being billed too. 

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
326 of 326

I'm sorry you feel this way, Aliesha. Please know that freelancers are charged a sliding fee based on your lifetime billings with each client (across all contracts you’ve ever had with that client company).

  • 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

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 for earnings after fees of $490.

 

You may read more about the freelancer service fees here.

 


~ Avery
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