How Do You Pay a Virtual Assistant?
If you’ve made the choice to hire a virtual assistant (VA), one of the next things you’re likely thinking about is how to pay them. The process of paying a VA will vary based on your specific situation (always consult your accountant) and whether they reside stateside or overseas.
When you hire a foreign virtual assistant, SMBs are not obligated to pay U.S. taxes for employees who do not reside in the U.S. and are not a U.S. taxpayer. The VA would be responsible for filing their own taxes directly in their home country. Here are some processes for paying a virtual assistant regardless of where they are located.
Establish a Payment Schedule
Determine whether you will pay them hourly, on a per-project basis or some other agreed-upon schedule. Typically, if it’s an hourly arrangement, you would pay them biweekly or monthly. If it’s project-based, you might pay them at regular intervals throughout the duration of the project. Choose a frequency that aligns with the nature of the work and is convenient for both parties. Regardless of the schedule, make sure you have a signed agreement committing to the payment terms.
In addition to the VA’s base salary, you might also consider offering performance incentives or giving them a technology allowance. Other benefits for foreign VAs like healthcare and insurance are not required, but any bonuses or benefits can be offered at your discretion.
Choose a Method for Payment
Next, decide on the payment method. You must ensure you’re using a payment platform that transfers funds securely. PayPal and TransferWire are common platforms used by SMBs, so too are direct bank transfers. With any payment method, be mindful of any associated fees that could come with it and be sure the virtual assistant is comfortable with the payment method.
Lastly, don’t forget to discuss and agree upon the currency for payments. From an SMB perspective, there may be exchange rates and potential fees associated with currency conversions.
When creating a contract for your virtual assistant, always communicate openly about payment arrangements and ensure both parties are clear on expectations. Ensuring that your employees are paid accurately, timely and in compliance with any state or federal regulations is imperative. If you need help with payroll services for your stateside employees, consider outsourcing through a PEO, ASO or payroll service. Our team at The OIS Group can help. We’ll conduct a full review free of charge and offer a custom solution just for your business. Contact us today to discuss your needs.
