This article explains how Upwork Payroll offers freelancers the flexibility to work as employees through a third-party Employer of Record (EOR) instead of as independent contractors. It details differences between Upwork Payroll contracts and standard Upwork contracts, the process of onboarding with an EOR, potential benefits, and payment schedules. - AI helped create this summary.
Flexibility in how you work is important for both you and your clients. Upwork Payroll helps give you more flexibility by making it simple for you to work as an employee, rather than as an independent contractor, during your engagement. In these cases, though you’ll complete work for the client, you’ll be employed through a third-party Employer of Record (EOR).
A client may ask you to work as an employee for the EOR instead of as an independent contractor for a variety of reasons, including the need for a set working schedule and a long-term relationship. If you decide to accept a project where you are classified as an employee, we’ll refer you to the third-party Employer of Record (EOR) through the Upwork Payroll solution.
As with other clients you work with on Upwork, you will agree upon a rate before the contract starts and will still communicate directly with your client on project-related matters.
How Upwork Payroll contracts differ from other Upwork contracts
- Upwork Payroll contracts may be hourly or salaried.
- With Upwork Payroll contracts you will log your time with the EOR instead of the Upwork Desktop App.
- Your contract will be marked as "paused" in Upwork to prevent duplicate reporting of hours and payments; this will not affect your Job Success Score.
- Your earnings from Upwork Payroll contracts will be reflected in your Upwork profile; however, the number of hours worked will not.
- Your EOR will relay any necessary information about matters relating to your employment.
- You may receive additional benefits through the EOR during an engagement supported through Upwork Payroll, depending on the employer, contract, and other factors.
How to get started with the Employer of Record
After you accept the offer, the EOR will send you a welcome message containing information on getting set up in the EOR’s system, logging your hours, benefits where applicable, and getting paid. The EOR will be your point of contact for any employment-related questions you may have before starting and throughout the duration of your contract.
What you’ll receive through the Employer of Record
The EOR will provide you with the specific details about your benefits and entitlements. Generally, EORs in the U.S. provide health insurance (in accordance with ACA), and other benefits depending on the EOR’s policies and applicable law. If you’re based outside the U.S. you’ll enjoy the same legal rights as any other employee in your country.
Frequently Asked Questions
For the Upwork Payroll service, we partner with EOR providers in the local jurisdiction where you work. The terms of your employment may vary by the applicable laws where you’re located, local custom, and by the employment provider's policies.
Because of these variations, the timing of payment for your work will depend on the specific employer and local law. In the United States, pay is typically weekly, biweekly, or twice a month on the first and fifteenth days of the month, though there could be variations. In some countries outside the U.S., monthly or another schedule may be customary. Pay dates in Upwork Payroll engagements will be made in accordance with the employer's payroll calendar, which will be provided to you during onboarding.
Your employer, the EOR, will pay you directly. This means you will not withdraw funds from the Upwork platform. You will need to provide the EOR with your bank account information and they will instruct you on how to set up direct deposit for your pay. If you need to update this information later, you will need to contact the EOR directly.