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Virtual employees save you 50%

July 11, 2017

I don’t think it’s any secret that when an employee is in the office 40 hours a week, they are not actually working all those hours.  They have numerous daily distractions from children and spouses calling to chatting with coworkers.  A study by Basex, a New York research firm, found that office distractions total 2.1 hours a day for the average employee – more than 10 hours and 25 percent of a regular workweek. This doesn’t even take into account the amount of time an employee spends on personal tasks at work. Virtual assistant staffing, you only pay for the exact amount of time your virtual employee works.

 

In addition, you don’t pay for office expenses such as utilities, desk, chair, computer, and the office space itself.

 

Then are benefits expenses including, vacation time, sick time, and insurance coverage.  With a virtual assistant, you pay for their hourly rate and reimburse for any costs incurred for the job (mailing costs, etc.)

 

Take a look at the below expenses comparing a regular employee to a virtual assistant.

 

Regular employee expenses

Wage $15/hour x 40 hr/week = $31,200/year

Social Security (.062 x 31,200) = $1,934/year

Medicare (.0145 x 31,200) = $452/year

Workers comp (.15 x 31,200) = $4,680/year

Sick time 1 week/year = $600/year

Vacation time 2 weeks/year = $1,200/year

Health Insurance Average = $7,800/year

FUTA (.008 x 7,000) = $56/year

Cost of hiring According to Business Week = $3,270/year

Office distractions* = $8,190 per year

Office utilities $300 per month = $3,600/year

Computer for the assistant = $1,000

Modest desk and chair = $700

Phone line install & monthly charges = $1,300

Moderate office $900/month = $10,800/year

Total = $73,782 per year Or = $35.47 per hour

 

Average Virtual Assistant expenses

$24.86/hour x 30 hr/week = $38,782/year

Social Security N/A Independent Contractor = $0

Medicare N/A Independent Contractor = $0

Workers comp N/A Independent Contractor = $0

Sick time N/A Only Pay for Time Worked = $0

Vacation time N/A Only Pay for Time Worked = $0

Health Insurance N/A Independent Contractor = $0

FUTA N/A Independent Contractor = $0

Cost of hiring requires no start up payment = $0

Office distractions* Working from home there are no office distractions = $0

Office utilities N/A Independent Contractor – they pay their own utilities = $0

Computer N/A Independent Contractor – they buy their own computer = $0

Desk and chair N/A Independent Contractor – they buy their own desk and chair = $0

Add’l phone line N/A Independent Contractor – they pay for their own phone = $0

Office space N/A working from home = $0

Total = $38,782/year Or  $18.65/hour

 

When all is said and done, you spend nearly double the amount for an in-house employee than for a virtual one.

 

Time is money. Hire a  virtual assistant and save on both.

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