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What is UpWork withholding tax?

Last updated on September 24, 2022 @ 9:19 pm

UpWork is one of the most popular platforms for finding freelance work. The company has over 2 million users and has been in operation since 2012.

UpWork withholds Social Security and Medicare taxes from its users’ paychecks. The company has stated that it will continue to do so unless the U.

S. government changes its policy.

UpWork argues that it should not have to pay these taxes because it does not have employees. UpWork also argues that it should not have to pay these taxes because it does not directly manage employees.

PRO TIP: Upwork may withhold taxes from your earnings as required by law. When this happens, we’ll send you an email to let you know how much was withheld and why. You can also find this information in the Transaction History section of your account.

If you’re a resident of the United States, Upwork is required to withhold taxes from your earnings if you don’t have a valid Tax Identification Number (TIN) on file with us. We’ll withhold 28% of your earnings unless you provide us with a TIN. If you provide us with a TIN, we’ll withhold taxes at the lower rate specified by U.S. tax law.

If you’re a resident of another country, Upwork may be required to withhold taxes from your earnings as required by law. When this happens, we’ll send you an email to let you know how much was withheld and why. You can also find this information in the Transaction History section of your account.

UpWork is right to point out that its employees are not subject to Social Security and Medicare taxes. However, the company does have a significant impact on its users’ wages.

UpWork withholds taxes from its users’ paychecks, and those wages are then subject to income tax. UpWork is therefore responsible for paying its users’ income taxes, even though its employees are not subject to these taxes.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.