The Upwork Payroll program is for freelancers, and those working with freelancers, who live in the U.S. and Canada. It can help clients work with freelancers that they believe should be classified as employees.
If you determine the relationship with your U.S.-based worker is best classified as an employee, we offer the Upwork Payroll service through a trusted, third-party vendor. Once you sign up, our staffing partner will employ the freelancer and help all parties comply with tax laws and gain access to affordable benefits without increasing overall costs in most cases. Very little changes with the way you use Upwork, but our payroll partner will handle filing W-2 forms, withholding income tax, unemployment claims, and payment of the employer side of payroll taxes.
Tax laws vary from country to country, but clients working with U.S.-based workers should determine their proper classification based on IRS guidelines and other federal, state, and local regulations.