Upwork payments in Australia. Fees, how it works and the options

Whether you have a job or not, finding ways to make some extra money can be a great way to supplement your income. These days there are a whole range of ways that you can use your existing skill set and start providing services online.

The best thing about doing this is that you can also work to your own schedule. Upwork is an online marketplace that gives people the opportunity to do just this. This article will introduce you briefly to Upwork and go through how to get paid once you’ve made a profile and taken on some work.

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What is Upwork in Australia

Upwork is an online work marketplace that started in San Francisco.¹ It is a platform where businesses can connect with independent freelancers from around the world that have a range of broad and specific skill sets. Freelancers can also sign up to promote their skills to find work.

Upwork officially launched in Australia in 2015 after merging with an existing online jobs marketplace known as Elance-oDesk.²

What payout methods does Upwork offer in Australia

The payout method available on Upwork depends on which country your account is based. If you are a based in Australia, you will have a choice between these options³:

• Direct to a local Australian bank
• Direct to US bank (Automatic Clearing House (ACH))
• US wire transfer
• Paypal
• Payoneer

To be able to receive payout to Paypal or Payoneer, you will need to open your own separate accounts with either provider before being able to receive any money. To set up a payment method on an Upwork account, you will need to follow these steps³:

1. Log into your Upwork account
2. Go to settings
3. Click Get Paid
4. Find Add Method
5. Choose your chosen available payment method
6. Set your payment schedule

Each payment method you add will take approximately three business days to become active. This means you will not be able to withdraw any funds until then.³

How long to Upwork payments transfer in Australia

Once your preferred payment method becomes active, you can choose to withdraw any cleared and available funds as you please. You may choose to set up an automatic payment schedule which could be⁴:

• Quarterly
• Monthly
• Fortnightly
• Weekly

Once a payment transfer has been withdrawn the timing of how long it takes to arrive in your account will depend on which method is chosen. Here is a breakdown of the timing of each method available in Australia.

Payment Method	Timing of transfer
Local Australian bank	Up to seven business days⁵
USD Transfer (ACH)	Two to five business days⁶
US wire transfer	Up to seven business days⁷
PayPal	Can be immediately or up to 24 hours⁸
Payoneer	48 hours (but may take longer)⁹

What documents do you need to receive payments from Upwork in Australia

There are some things you need to do before you are able to receive payments from Upwork. This includes filling out a W-8BEN form and uploading your Australian Business Number (ABN). We’ll explain more about these now.

W-8BEN form

The W-8BEN/W-8BENE form is required for non-US residents using the Upwork platform to provide their freelancing services. If a freelancer does not provide this form filled out correctly, then Upwork may withhold up to 30% of their future earnings made on the platform. These funds are withheld as Internal Revenue Service (IRS) withholding tax. In conjunction with providing this form, all freelancers must list their tax residence on the profile.¹⁰

ABN

Upwork freelancers are not employees of Upwork but sole proprietors. This means that an ABN will be required when lodging end of year taxes and to be uploaded on your profile. It’s also important to note the Upwork requests that freelancers register for GST to avoid an extra fee charged by Upwork.¹¹

Proof of business

To initiate a contract with some clients, you may be requested to provide proof of business operation. This can be done through providing any form of documentation that shows you own or run an active business.¹²

What are the Upwork fees for withdrawals

For some of the payment methods, withdrawal fees apply and are, these are all denominated in USD. Here is a breakdown of some of the Upwork fees you will pay for certain payment methods as a freelancer in Australia.

Payment method	Withdrawal fee (USD)*
Local Australian bank	$0.99 per withdrawal⁵
USD Transfer (ACH)	Free⁶
US wire transfer	$30 per withdrawal⁷
PayPal	Varies on country and currency⁸
Payoneer	Varies on country and currency⁹

*Fees up to date as of 11th October 2023

For PayPal and Payoneer withdrawals, there may be extra fees incurred by each company for receiving the money and then withdrawing the money to a bank account from there.³

Upwork exchange rates used in Australia

Upwork states that the exchange rate used on direct to local bank transfers is determined by their local banking partner. Upwork does not specify who this banking partner is and if there are any fees incorporated in any conversions when transferring to a local bank account.⁵ However, Upwork members of the Upwork community forums have stated that the exchange rate is generally below market rate which means they receive less than withdrawn.¹³

Things to keep in mind about Upwork and their payments

As a global jobs marketplace, there are a few things you need to keep in mind.

Currency for payments

All payments accrued on the Upwork platform before withdrawal is denominated in USD.

Taxes

No matter what type of business you are operating to provide your services on Upwork, you will be responsible for paying your own taxes at the end of each financial year. This means from each withdrawal transfer from the platform, you will need to set aside the approximate amount of tax you anticipate to owe.

Service fee

Upwork charges a service fee of 10% on all client contracts accepted by freelancers. Upwork automatically takes this fee out at the cessation of each contract, milestone or agreed schedule on ongoing contracts.

FAQs

To round out this article on all things related to Upwork payments, let’s take you through some frequently asked questions.

What type of contracts are available to work on Upwork?

There are two types of project contracts that can be taken on by freelancers on Upwork. These include hourly contracts, fixed price contracts, project catalogue contracts and bonus payments.

Are there any fees to use Upwork?

There are no fees to make an account as a freelancer with Upwork. However, Upwork takes a 10% service fee on all client contracts initiated through the platform.¹¹

As an Australian freelancer, do I pay US taxes too?

If you have updated your ABN and filled out a W-8BEN form correctly on your Upwork profile, you will not have any money withheld for US taxes.

What can I do if I don’t receive a payment?

If you have made a withdrawal and have not received your payment by the approximate transfer times, then you will need to contact Upwork support.

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Sources:

1. Upwork about report
2. The Australian Upwork
3. Upwork Payout methods
4. Upwork Automatic Payment
5. Upwork direct to bank
6. Upwork ACH timing
7. Upwork wire transfer
8. Upwork PayPal timing
9. Upwork Payoneer timing
10. Upwork W-8BEN form
11. Upwork GST
12. Upwork proof of business
13. Upwork community forums exchange

Sources checked on: 11 October 2023