When you work with a freelancer or agency on UpWork, you’re responsible for paying taxes on your earnings. The amount of tax you pay will depend on your country’s tax laws.
There are two types of taxes you may be responsible for as an employer:
Income tax – This is the tax you pay on your earnings. The amount of income tax you pay will depend on your country’s tax laws.
PRO TIP: If you are thinking about sharing your tax information with Upwork, think again! While Upwork may seem like a reputable site, there have been many reports of people’s tax information being stolen and used for identity theft. So, unless you want to risk your personal information being compromised, it’s best to avoid sharing your tax info with Upwork.
Value Added Tax (VAT) – This is a tax that is charged on goods and services that are sold in the European Union (EU). The amount of VAT you pay will depend on the country in which you are located.
If you’re located in the United States, you will not be responsible for paying VAT.
As an employer, you’re responsible for collecting and remitting taxes to the appropriate tax authorities. UpWork will not do this for you. It’s important that you understand your responsibilities as an employer, and that you comply with all applicable tax laws.
If you have any questions about your responsibilities as an employer, we encourage you to speak with a tax advisor.
6 Related Question Answers Found
There are a lot of questions out there about UpWork and taxes. Does UpWork do your taxes? The simple answer is: no, UpWork does not do your taxes.
UpWork is a freelancing platform that allows businesses to connect with remote workers for a variety of projects. One of the key benefits of using UpWork is that businesses can tap into a global pool of talent, which can help them save money on labor costs. But does UpWork report income to the IRS?
UpWork does not charge tax.
As an independent contractor, you’re responsible for paying your own taxes. This includes federal, state, and local taxes. You will need to set aside money from each paycheck to pay your taxes.
UpWork collects taxes in all the jurisdictions in which it operates. UpWork pays all applicable taxes in each of the countries in which it operates.
How Do I Report Income From UpWork? If you’re a freelancer who uses UpWork to find clients and complete projects, you may be wondering how to report your income from the platform on your taxes. After all, UpWork is a self-employment marketplace, so your earnings are considered taxable income.
