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HR Planning




Employer Tax Liability is an expense the employee is rarely aware of.


Employer Tax Liabilities

Why take on the tax, insurance, benefits and risk liabilities of a traditional employee when you can hire virtual staff and eliminate those costs



What You’ll Pay

Fit Small Business ran the numbers and estimates that employers should expect to pay 10 percent or more to cover payroll taxes, unemployment taxes, and workers’ compensation insurance.


Because unemployment taxes and social security taxes phase out after a certain compensation level, you will pay a higher relative percentage for low-paid employees than you will for well-paid ones


If you do business in a state with a high unemployment tax rate and a higher workers’ compensation rate — like New York or California — that will also add on a few more percentage points.




If you don’t want to pay extra taxes, insurance, and payroll processing costs, consider independent contractors and consulting firms. They’ll probably charge a higher rate than what you’d pay an hourly employee, but it may be worth avoiding the taxes and hassle.


If you truly need to hire an employee for help, consider your family members first. The IRS offers payroll tax perks to sole proprietors and partnerships that hire children and spouses.


If they meet the requirements, small-business owners don’t have to pay Social Security, Medicare or FUTA taxes when they employ their children, and can avoid FUTA tax if they hire a spouse.



Social Security Tax

The tax you pay as an employer funds Social Security benefits. For 2017, you’ll pay 6.2 percent on each employee’s wages up to $128,400. After an employee’s annual wages exceed $128,400, no more tax is levied.



Medicare Tax

These contributions go toward the general Medicare fund. For 2017, you’ll pay 1.45 percent of each employee’s salary as Medicare tax. Unlike Social Security, there’s no wage base limit for the Medicare tax.


However, you do need to withhold an additional 0.9 percent from each employee’s paycheck after the person’s wages exceed $200,000 in a calendar year.



Federal Unemployment Tax Act (FUTA)

The federal unemployment insurance system, along with the state systems, funds benefit payments for unemployed workers. For 2017, the FUTA rate is 6 percent of the first $7,000 of employee wages.



State Unemployment Tax

Along with the federal unemployment tax, you may be subject to a state unemployment tax. Tax rates and policies vary by state. Luckily, employers can take a credit for the state unemployment tax they pay against the FUTA tax. The maximum credit is currently 5.4 percent.



Other Expenses

There are other expenses that are hard to avoid when you bring on an employee. All states require that you purchase workers’ compensation insurance once you have someone on payroll.


Rates vary by state, but a 2014 report [PDF] from the state of Oregon noted that the median rate is around $1.85 per $100 of payroll, or 1.85 percent of an employee’s salary.


If you’re in California, you could pay up to 3.5 percent of total wages to cover workers’ compensation.



Virtual Staff Efficiency Report

Virtual Assistant vs Full Time Admin


Virtual Assistant vs Full Time Admin  does not compare in price


Its in the numbers. Pure and simply.

No magic tricks. No magic potions.



Yes of course transitioning from a traditional business model to a virtual model will take some effort and work.


The reduction to business overhead which is significantly reduced in the 2 areas where most business report the most expenses, Payroll and Real Estate, is too substantial to overlook.


The business model is no longer a Silicon Valley experiment, its a proven profitable business model assembled successfully in every industry.


$15 || Hourly Rate || $15

$5.25 || Employee Benefits || $0

$3.75 || Employee taxes || $0

$9 || Office Space/Materials/Equip || $0

$33 || Cost Per Hour || $15

$84,640 || Salary || $31,200


Why Does Virtual Staff Lower Business Overhead?



Virtual Staff Benefits CostSave Money

Consider Benefits, Insurance, Taxes, Real Estate


Virtual Staff Benefits Saving TimeSave Time

Be more Productive and Efficient, take advantage of 24/7 WorkForce


Virtual Staff Benefits Top Tier Talent Top Tier Talent

Dont be Limited to Local Talent and Local Cost of that Talent


Virtual Staff Benefits Reduce Risk

Reduce HR Risk & Cost

Every single Hire that your HR makes poses a risk to your business and brand reputation


Virtual Staff Benefits Focused StrategyFocused Strategy

Use Talent When and Where You Need, Plug in and Plug out the employees that perform best at each task.


Virtual Staff Virtual ManagementVirtual Project Management

Plan, assign, communicate, execute, test and employ.



Technology AdvancesVirtual Staff Tech Advances

Use Technology to enhance your business from top to bottom


Minimize Company Wide Risk & Liability

Virtual Staff Reduced Company Risk and Liabilities

From loses to bad hires to litigation, eliminate the possibility.