Why hire virtual and not an employee?

Why hire virtual and not an employee? There are many reasons a business would prefer a Virtual Assistant (a1099’d Independent Contractor for the sake of our conversation today) to an assistant working as a W2 employee (even if they WFH or are remote). I am a virtual assistant exclusively working as an independent contractor with my clients. Because of my classification, all of my clients enjoy several benefits including cost & taxes, space, and training. 

When hiring an Independent Contractor, a business owner will pay according to a signed contract or agreement generally provided by the contractor. There are several ways a contractor may charge a client, but all ways are more lucrative for the client than hiring an employee. Personally, I’ve chosen to build my business charging a monthly retainer rate for work I do (for those who require more of my time, I also have an hourly wage option beyond the retainer). Other Virtual Assistants may choose to bill per hour exclusively or by project. Either way, this saves business owners money in the long run as they pay for exactly what is needed rather than paying a set hourly wage consisting of used and unused hours throughout a work week, and virtual assistants aren’t stuck at a desk twiddling their thumbs or wasting time because they finished their work hours ago.

“You pay to get your stuff done; time spread out as you need it according to a contract that is written specifically for you. ”

As a side note here- I think you’ll find most Virtual Assistants to be extremely driven people. I’ve never met a Virtual Assistant who just doesn’t mind wasting time, and for that matter, I’ve never had a client who likes that either. 

In addition to paying for only used time, business owners will save even more as state and federal laws require an employer to pay certain taxes for each employee. Typically, an Independent Contractor pays the total sum of these taxes, saving their clients that expense and headache. I have seen negotiations in which a higher wage will be agreed on to help cover these costs, however generally speaking, Virtual Assistants will consider this when they write contracts, so it is not an additional charge to the client. Tax law can be very confusing, so it’s always a good idea to work with a tax professional.

In regard to the benefit of space, Independent Contractors provide their own equipment and workspaces saving business owners the need to expand or reconfigure work areas or purchase new computers, phones, and/or other common office equipment. Virtual Assistants will already have an at-home set up that is most conducive to their work preference providing clients the most efficient help possible. 

Everyone has different needs when it comes to creating an efficient and comfortable office environment, and an employer who has a diverse group of employees, could never create a space in which all of these individuals flourish. The beautiful thing about virtual assisting as an Independent Contractor is that my setup works for me. I thrive in my workspace with my equipment.

“My environment is exactly what I need to excel. And when I excel, my clients excel.”

Finally, for most business owners, a Virtual Assistant is able to jump in and start immediately as experience and education has provided an extensive breadth of software, program, and organizational knowledge. This allows a Virtual Assistant to quickly assess a client’s needs as a business and provide and implement solutions based on their specific situation. Additionally, part of a Virtual Assistant’s value is the continued learning of new software systems in addition to prior knowledge of products.

I’ve used Microsoft Office, Google Suite, Quickbooks, Expensify, Facebook for Business, Instagram, Hootesuite, Freshbooks, Slack, Asana, Wunderlist, and so many more for my clients… If you need it or use it, chances are your Virtual Assistant has used it as some point for a client. Having to teach Google Apps to a new employee who came to you from a former employer who only used Microsoft office costs your business time and money, why not hire someone who already has a skillset in place? 

My professional career as a Virtual Assistant, Executive Assistant, Business Manager, and Office Manager have provided me a great amount of experience with a broad spectrum of software and programs as well as taught me how to learn new systems quickly. This has benefitted both my business and my clients. 

“This breadth of skill provides an arsenal of options to get a client organized and make their business as efficient as possible.”

There are more benefits beyond the three I’ve listed here- expenses, space, and training- but generally speaking I feel these are the most prominent benefits that have applied to my clients across the board. Whether they needed a bookkeeper or social media manager, these benefits impact all my clients. So, if you’re looking to hire and weighing options between a W2 employee and 1099 Contractor, consider these things as you make your decision. And if you’re looking to be a virtual assistant, make sure you’re well studied on classification, so you can offer these great benefits to your clients!

*Important note on this topic: there are very specific classification laws federally and per state, so it’s important that you look at those to decide if a 1099 contractor is a good fit for your business needs. Penalties can get very expensive if a business mis-classifies an individual.