Upwork Upwork Global Inc, Elance, oDesk No option to correct previous work hours, even if their mistake Mountain View California

The week of Feb 15-21, 2016, I used Upwork's team app to record and upload my work hours to my freelancer account. Feb 22, 2016 I noticed my hours were never uploaded and the team app would only display a white background, with no option to begin time tracking.

I then attempted to go to my work diary and add manual time tracking, but was unable to do so. I immediately contacted Upwork, requesting them to allow me to manually add my hours for the previous week or that they add my hours for me. They refused, stating their policy was to not allow you to edit a previous work week's hours. Instead, they said I needed to contact my client and ask them to pay me using the bonus payment option.

The IRS taxes bonuses under CFR Section 31.3402(g)-1 - Supplemental wage payments, which states a mandatory flat rate withholding of 25% based on 2016 supplemental wages tax rates. I have been in the 15% tax bracket for the last two years, and do not expect to come close to climbing to a higher tax bracket for 2016. Therefore, Upwork is requiring me to take an additional 10% tax hit every time their team app does not properly upload my hours to my client's work diary, with no other way to avoid it. I cannot estimate how often that will happen, so this can quickly become a huge tax burden on myself and others who come across this situation.

I attempted to resolve this issue by stating these facts to their representative, twice in fact. Each time I was directed to contact my client and ask them to make a bonus payment to make up for the hours that were not uploaded through Upwork's team app.

I also have policies in place to protect both my clients and myself, so I fully understand why policies are put in place. But I would never ask my client to change their financial responsibilities due to a fault of my own. For Upwork to ask this of me, without any other ability to resolve the issue, is a huge financial risk to continue doing business with them. It is also very poor business practice, and I hope this helps someone else avoid being placed in the same situation as I.