Taxes and Your Virtual Assistant
There is a breaking point for almost every successful entrepreneur. You started out on your own and planned to stay that way as long as possible. But as your business continues to grow, you reach a point when you can no longer avoid it. You may admit you need help, but cannot afford to affect your bottom line by hiring an employee, while also adding on payroll taxes, insurance premiums and benefits that come with having employees.
Thankfully there are options for getting the help you need without additional extraneous expenses.
According to Wikipedia:
A virtual assistant (typically abbreviated to VA, also called a virtual office assistant) is generally self-employed and provides professional administrative, technical, or creative (social) assistance to clients remotely from a home office.
In other words, a virtual assistant is just that - an assistant who works virtually. That means she could be working out of a home office, from a hotel room, in a coffee shop - literally anywhere that has WIFI, a VA can work from. She can provide services like email management, customer support/help desk, web design, transcription, graphic work, calendar management, data entry and then some.
The great thing about a VA is that she is an independent contractor, self-employed, so you don't have to pay for office space, employee taxes and all those other things that come with having a 'real' in-office assistant.
The IRS is strict when it comes to guidelines in regards to an independent contractor. To make sure you are on the up and up, visit this page .
Here are some guidelines to make sure you are hiring an independent contractor and not an employee:
- No benefits are provided other than pay (no insurance or retirement benefits);
- An independent contractor typically works on a project basis, whereas an employee works under a long-term contract;
- An independent contractor typically sets their own schedule, uses their own tools and equipment and does the job with minimal supervision.
On top of following these guidelines, you must also issue a form 1099 by January 31 to every independent contractor you paid at least $600 to in the previous calendar year.
If you follow the rules and guidelines involved, independent contractors can be a great way to solve your hiring needs while savings thousands of dollars in taxes, insurance and benefits.
Does this sound like something that could improve your efficiency and help make better use of your time? Thought so.
The potential ways you could use a VA are endless. And by keeping the work within the guidelines of independent contractors, you can have several of your daily tasks taken care of virtually, all while avoiding the expenses of traditional employees.
So there you have it. That's all. Now that you know how convenient it is, go ahead and book a consultation!