Upwork Payroll

Upwork offers it when the client decides the person is best classified as an employee rather than an independent contractor. The talent becomes an employee of the Employer of Record and is assigned to the client for the project. Assignments can be hourly or salaried; fixed-price contracts are not supported. The help article covers hiring in the U.S.; hiring abroad has its own article.

Who does what. For U.S.-based talent the Employer of Record enters the employment agreement, manages pay, keeps workers' compensation insurance, administers payroll taxes and provides legally mandated and voluntary benefits. The client directs the day-to-day work, complies with anti-discrimination and harassment law, provides a safe workplace and allows legally required breaks and leave.

Onboarding first. Work must not start until the employee finishes onboarding with the employer, which can include background checks. Upwork says onboarding for U.S.-based talent takes 3-5 business days on average, and work done before that is the client company's responsibility.

What changes for the freelancer. Upwork's freelancer article says time is logged with the employer instead of the Upwork time tracker and work diary, the contract shows as paused on Upwork to avoid double reporting without affecting the Job Success Score, earnings appear on the profile but hours do not, and pay comes from the employer directly rather than as an Upwork withdrawal.

For agencies. A payroll assignment is employment of one person, not a contract the agency staffs, so it sits outside the agency's proposal and roster flow.