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    Independent Contractor vs Employee: How Virtual Assistants Save Money


    As a business owner, finding the right balance between managing expenses and maintaining productivity is always a challenge. One of the biggest decisions a business owner has to make is whether to choose an independent contractor or an employee. 

    In recent years, virtual assistant services have emerged as a popular and cost-effective option for businesses looking to cut costs. This blog will explore the cost benefits of using a virtual assistant for property management vs. a W-2 employee and why VPM Solutions is the best platform to hire virtual assistants.

    What Is an Employee? 

    You might think there is an obvious answer to the question of "what is an employee," and you're right. An employee is someone that works for your company. 

    However, there are different types of employees, including permanent, temporary, full-time, part-time, and seasonal. Permanent employees are those hired for an indefinite period, whereas temporary employees are hired for a specific period, usually to cover a permanent employee's absence or for seasonal work. 

    Additionally, full-time employees work for a set number of hours per week, whereas part-time employees work for fewer hours.

    Independent Contractor vs. Employee

    The most relevant distinction to understanding what an employee is vs. a virtual assistant is this: employees are entitled to certain benefits, including paid time off, healthcare, retirement plans, and other perks depending on the company's policies. 

    Additionally, employers are responsible for paying payroll taxes, providing worker's compensation insurance, and complying with labor laws and regulations.

    In contrast, virtual assistants are independent contractors. Like employees, they work for your company and provide skills and productivity in their roles. However, because they do not have W-2 "employee" status, companies don't pay for traditional benefits, health insurance, 401k matching, or paid time off. 

    Building a team through a virtual assistant service reduces payroll costsThe Cost of an Employee is More Than Just Their Salary

    When hiring an employee, many business owners only consider the employee's salary. However, the cost of an employee goes beyond just their salary. 

    For example, in addition to the benefits expenses we mentioned, property managers must cover the costs of recruiting, office supplies and equipment, and office space. Additionally, companies pay employees for days they don't work, such as holidays, vacation time, and sick days. 

    All of these costs add up and can make hiring employees a costly option for businesses.

    The Cost Savings of Choosing Virtual Assistants

    One of the primary benefits of using virtual assistant services is cost savings and reduced payroll costs. 

    With virtual assistants, businesses don't pay for anything but the time they work. This means businesses don't have to worry about providing office space, equipment, or any benefits like healthcare or vacation pay. Instead, virtual contractors are responsible for their own health costs, equipment, and space to work. 

    Instead, businesses can add virtual assistants to their teams on an as-needed basis, reducing payroll costs in the long run.

    In many cases, companies can add 2-3 virtual assistants to their team for the cost of one full-time U.S.-based employee. This cost savings can be significant for property managers and real estate agencies who often have to juggle multiple tasks and responsibilities while watching the bottom line. 

    By choosing virtual assistants for data entry, social media management, listings coordination, and more roles, property managers can delegate tasks such as answering phone calls, scheduling appointments, and managing emails to a virtual assistant, freeing up their time to focus on more critical tasks.

    VPM Solutions is the Best Virtual Assistant Service for Real Estate

    By building a team of virtual assistants, businesses can save money on office space, equipment, and benefits while still getting the support they need to manage their day-to-day operations. 

    VPM Solutions is the only online platform with thousands of industry-trained virtual assistants for property managers and real estate agents. Additionally, as property managers and real estate professionals ourselves, we understand the unique needs of property managers. That's why we developed a comprehensive training program (our VPM Academy) to ensure that your virtual assistants are well-equipped to handle the tasks required of them.

    We firmly believe that adding a property management virtual assistant (or several) to your team is the best way to improve efficiency, serve clients better, support your employees, and improve your bottom line. 

    Savings can be significant when choosing an independent contractor vs. employeeFind Out How Much You Could Save With a Virtual Assistant for Property Management

    Whether you're a small business owner or a large corporation, using virtual assistants can be a game-changer for your business. 

    So, how much could you save? We get that question a lot!

    To answer that question, we built a free Financial Impact Calculator to help property managers calculate the financial impact of choosing virtual assistants over employees. This tool can be incredibly useful for property managers or real estate brokers trying to decide whether to hire employees or contract with virtual assistants.

    To use the calculator, simply request it through the button below! Then, fill in your numbers and see how much you can save per employee, monthly, and annually when choosing virtual team members to scale your business.