Fee payment procedure

[nadiiamanager]

Hi, 

I'm looking for any info about when are the taxes and feepayed or subtracted.

What the order of actions? 

Thank you

[g_vasilevski]

Hi Nadiia,

To view more details about your earnings, fees, and transactions go to Reports > Transaction History. If something is still confusing, let me know. Thank you.

[nadiiamanager]

I'm new to the UpWork service, so Transaction page is empty.  

The information I'm trying to clarify is the sequence of payment actions from starting a new project till withdraw funds from the service with fee and tax payment included.

Does fee and tax are withdrawn automatically or I should pay them via bills? 

[g_vasilevski]

Hi Nadia,

The freelancer service fee is automatically deducted on each payment you receive. To learn more about transactions and invoices, check out this Help Article. 
Regarding your taxes and reporting your income, I would recommend consulting yourself with a local specialist. Thank you.

[mwiggenhorn · Accepted solution]

Taxes are not withheld from the money you earn.  You must deal with your country's tax laws appropriately.

[ickalt]

Let's say you have a job that pay 500 dollars.. does Upwork wait to take their fee til you get paid or do they take money from you as soon as you accept a job?

( and yes there is another site that does that.. actually had a big job.. they took a lot of money out of my account as fee and then they guy changed his mind and never even sent me any files and I was not getting my money back that they took as fee..)

If they take the fee at the time you get paid.. do they take all at one time let's say you have set it as payment at the end of the work is done.

But if you had set it as a milestone.. do you take it as installments with fee taken out of every time you get a milestone .. or at the end payment?

it could be important to know.. especially if you have a shortage of money and they take it in advance.. You will not be able to take any bigger jobs. 

Angelica 

[mwiggenhorn]

By the time your money becomes "available"., Upwork has taken their percentage.  Does that make sense?  They will not take anything in advance (unless you are buying extra connects or an upgraded membership).

[ickalt]

Ok so on other words they take the fee when you get payed.

But No answer on how it works with milestones?.. so lets say you are
getting a first milestone of 100 dollars and next is for 150 .. do they
take 20 dollars the first time and 30 dollars the next time.. or do they
take the whole amount when you get the first milestone.

This has been the hardest part on the other site I have worked on .. if you
dont have any money you can’t even apply for a job with a bigger payment
since they take the fee as soon as you say yes to the work..

If you dont have the money at the page they go for it at your PayPal and if
nothing on PayPal they take it from you bank account.. did this mistake one
time and accepted and then I found out one of my insurances had not been
paid that was on auto-payment.. because the site had taken money out of my
account and then it was just a 2-3 dollars short.. and I had to borrow that
just to pay the insurance.. grrr.. totally idiotic really let’s say it’s a
big job that takes time.. then you have to wait a long time before you get
the money back and get payed.. much better that they take the money out of
the payment..

I have a job that when I send the job back the firm sends the job to the
client.. then they have 30 days to pay the firm and first then I get my
money.. so in fact.. they take the money for the fee.. then let’s say it
takes 2 months before all work is done.. and then I send it in.. and I have
to wait another 30 days.. oh and don’t forget that they have first the time
to ok the work.. or if they want to change anything.. then says ok.. and
then they have 30 days to ok.. they pay the firm.. and after that I get
paid.. so I have to pay in the beginning to accept the job.. work for 1-2
months.. they have time to look it through.. and then they have 30 days to
pay.. and then the other firm should pay you..

I don’t really think it’s ok that you have to pay the fee in advance just
to be able to work.. and maybe have to say no to some jobs because it’s too
much fee and I can’t afford to take a high paying job.

[martina_plaschka]

---

Angelica L wrote:
Ok so on other words they take the fee when you get payed.

But No answer on how it works with milestones?.. so lets say you are
getting a first milestone of 100 dollars and next is for 150 .. do they
take 20 dollars the first time and 30 dollars the next time.. or do they
take the whole amount when you get the first milestone.

This has been the hardest part on the other site I have worked on .. if you
dont have any money you can’t even apply for a job with a bigger payment
since they take the fee as soon as you say yes to the work..

If you dont have the money at the page they go for it at your PayPal and if
nothing on PayPal they take it from you bank account.. did this mistake one
time and accepted and then I found out one of my insurances had not been
paid that was on auto-payment.. because the site had taken money out of my
account and then it was just a 2-3 dollars short.. and I had to borrow that
just to pay the insurance.. grrr.. totally idiotic really let’s say it’s a
big job that takes time.. then you have to wait a long time before you get
the money back and get payed.. much better that they take the money out of
the payment..

I have a job that when I send the job back the firm sends the job to the
client.. then they have 30 days to pay the firm and first then I get my
money.. so in fact.. they take the money for the fee.. then let’s say it
takes 2 months before all work is done.. and then I send it in.. and I have
to wait another 30 days.. oh and don’t forget that they have first the time
to ok the work.. or if they want to change anything.. then says ok.. and
then they have 30 days to ok.. they pay the firm.. and after that I get
paid.. so I have to pay in the beginning to accept the job.. work for 1-2
months.. they have time to look it through.. and then they have 30 days to
pay.. and then the other firm should pay you..

I don’t really think it’s ok that you have to pay the fee in advance just
to be able to work.. and maybe have to say no to some jobs because it’s too
much fee and I can’t afford to take a high paying job.

---

You seem to misunderstand the upwork model. It's all explained in the help section. 

[ickalt]

I guess you don't understand. I wrote about how it worked on another site
and I said to the other person answering me before I just wondered for the
milestone part...and then told how it is on the other site...no i got it
perfectly. but i never said what i wrote is for this place...but that you
would have known if you read the previous messages too.
🙂

[PradeepH]

Hello Angelica,

Your Upwork services fees are deducted only from each payment released by the client on the contract. This means that there will be no advance Freelancer service fee deducted for payments or milestones until you are paid on contracts. You can refer to this Help article for more information.

Thank you.

Pradeep H.