The hiring choice used to be simple. You needed help, you hired someone. Done.
Now there's a second option that makes the first look pricey. VAs do similar work at 40-78% lower cost. No overhead. No benefits. No office space.
But cheaper isn't always better. The real question: which fits your needs?
This guide breaks down when VAs make sense, when employees are worth more, and how to figure the true costs.
Key Takeaways
- A $50,000 employee really costs $65,000-70,000 with all expenses
- Offshore VAs cost $15,000-25,000 yearly—up to 65% less
- VAs cut overhead: office space, equipment, benefits, idle time
- Choose based on task type, control needs, and teamwork level
In This Article:
- What Employees Really Cost
- What VAs Really Cost
- Side-by-Side Numbers
- Beyond Cost: When Each Wins
- Making the Right Choice
- Frequently Asked Questions
- The Bottom Line
What Employees Really Cost
Salary is just the start. What you actually pay runs much higher once you add everything up.
Breaking Down Employee Costs
TeamSourcer found that a US employee making $50,000 really costs $65,000-70,000. That's 30-40% above the salary.
Here's where the extra money goes:
Direct costs:
- Base salary: $50,000
- Payroll taxes (7.65%): $3,825
- Health insurance: $6,000-15,000
- Retirement match (3-6%): $1,500-3,000
- Paid time off (3 weeks): $2,885
- Workers comp insurance: $500-2,000
Hidden costs:
- Office space: $3,000-8,000
- Equipment: $2,000-5,000
- Training: $1,000-3,000
- Manager time: $3,000-5,000
- Hiring costs: $3,000-5,000
Total: $76,000-99,000 for a $50,000 job
That gap catches many business owners off guard. You're not hiring a $50,000 person. You're making a $75,000+ commitment.
The Idle Time Factor
Employees get paid whether they're working or not. Coffee breaks, chats, slow periods, personal tasks—you cover it all.
Studies show the average worker is productive 60-70% of paid time. On a $50,000 salary, that's $15,000-20,000 going to non-work hours yearly.
What VAs Really Cost
VAs work on different math. You pay for work done, not time present.
VA Price Ranges
INSIDEA data shows VA rates from $8/hour to $70+/hour in 2026. Location, skills, and service type all matter.
Typical monthly costs for full-time VA help:
- Offshore (Philippines, India): $800-2,000/month
- LATAM (Latin America): $1,400-2,800/month
- US-based: $4,000-9,600/month
For work matching that $50,000 employee:
- Offshore VA: $12,000-24,000 yearly
- LATAM VA: $16,800-33,600 yearly
- US-based VA: $48,000-115,000 yearly
What You Don't Pay
VA savings go beyond hourly rates. Whole cost categories disappear:
Costs that vanish with VAs:
- No payroll taxes
- No health insurance
- No paid time off
- No office space
- No equipment to buy
- No workers comp
- No paid idle time
You pay for work hours only. That changes everything.
Side-by-Side Numbers
Let's compare equal support for a business needing 40 hours weekly of admin help.
| Cost Type | US Employee ($50K salary) | Offshore VA | US-Based VA |
|---|---|---|---|
| Base pay | $50,000 | $18,000 | $52,000 |
| Payroll taxes | $3,825 | $0 | $0 |
| Health benefits | $8,000 | $0 | $0 |
| Retirement | $2,000 | $0 | $0 |
| PTO | $2,885 | $0 | $0 |
| Office space | $5,000 | $0 | $0 |
| Equipment | $3,000 | $0 | $0 |
| Training | $2,000 | $500 | $500 |
| Yearly Total | $76,710 | $18,500 | $52,500 |
| Monthly | $6,393 | $1,542 | $4,375 |
The offshore VA gives similar admin support at 76% lower cost. Even the US VA saves 32%.
Working with VA staffing agencies often improves these numbers. They provide tested candidates and cut training time.
Beyond Cost: When Each Wins
Cost matters, but it's not everything. Each option has clear strengths.
When VAs Win
Task-based work: VAs shine with clear, repeat tasks. Admin support, data entry, scheduling, customer service, research—all fit perfectly.
Easy scaling: Need more help during busy times? Add VA hours. Slow period? Cut back. Try that with employees.
Time zone coverage: VAs across the world can give support you couldn't afford with local staff. Customer service running 16+ hours becomes possible.
Tight budgets: When dollars matter most, VAs stretch your staffing budget far further.
Testing roles: Not sure you need a full position? Try a VA for three months first.
When Employees Win
Team collaboration: Work needing constant back-and-forth, creative sessions, or quick changes often works better in person.
Culture building: Employees add to and gain from company culture in ways remote workers can't fully match.
Sensitive access: Some roles handle data or decisions where having an employee gives important protections.
Key relationships: Important connections with clients, partners, and vendors sometimes need the steady presence an employee provides.
Growing people: Employees can move into bigger roles. VA relationships tend to stay more fixed.
The Blend Approach
Many businesses use both. Keep strategic, relationship, and sensitive roles as employees. Move task-based, routine work to VAs.
This captures VA savings without losing what employees bring to high-value positions.
Making the Right Choice
Use this guide to decide if a specific role fits a VA or employee.
Decision Checklist
Lean toward a VA if:
- Work is mainly task-based with clear results
- Tasks can be done alone
- Real-time teamwork is minimal
- Cost savings matter a lot
- You need to scale up or down easily
- The role is routine, not strategic
- You're testing if you need this function
Lean toward an employee if:
- Work needs constant teamwork
- The role handles very sensitive info
- Relationship building is central
- You need someone on-site regularly
- Growth and keeping people matter
- Complex choices with company context are needed
The 80/20 Rule
For most businesses, roughly 80% of work fits VAs well. The other 20%—strategic, relationship-heavy, team-focused—often justifies employee investment.
Look at your current team. How much of what they do could a trained VA handle? That gap shows your potential savings.
Frequently Asked Questions
Can a VA do everything an employee does?
VAs handle most task-based work well—admin, customer service, data entry, research, scheduling, basic marketing. They fall short on work needing physical presence, highly private access, complex teamwork, or deep company knowledge. Think of VAs for getting things done and employees for strategy and relationships.
How do I manage a VA I never meet?
Remote management needs clear systems. Use project tools, set up regular check-ins, write down processes well, and set clear targets. Many managers find VAs easier to manage than office workers. Results are clearer and distractions are fewer. The key: define success up front.
What if my VA quits or vanishes?
This risk exists with employees too. Reduce it by writing down all processes, keeping access to all accounts and files, and using VA agencies that offer backup help. Some businesses work with multiple VAs to avoid relying on just one.
Are there legal differences I should know?
Yes. Employees fall under labor laws, tax rules, and job protections that don't apply to contractors. VAs as contractors handle their own taxes and benefits. If you're unsure about how to classify, talk to a lawyer—getting it wrong carries real penalties.
The Bottom Line
There's no single right answer. There's a right answer for your situation.
If you're watching costs, VAs win clearly for most routine work. If you're building a team culture, growing future leaders, or handling sensitive strategic work, employees may be worth the extra cost.
Most businesses do well with both. The fastest-growing companies credit their smart use of VAs for routine work while putting employee resources into high-value roles.
What does your situation call for? Run the numbers. The answer usually gets clear once you see true costs side by side.
Related Reading:
- VA Cost Savings Guide - Detailed ROI calculations
- Scaling with Virtual Assistants - Growth playbook for VA teams
- Tasks to Outsource - What to delegate first