Why It’s Dangerous to Hire a Virtual Assistant Company That Uses Contractors

It's common for VA companies to advertise flexibility and affordability — but what they’re not advertising is that they’re staffed entirely by independent contractors. And that’s a huge problem.

Here’s why:

You Could Be on the Hook for Misclassification with the IRS

If a VA is treated like an employee (meaning they are provided consistent tasks and have ongoing oversight) but is technically a 1099 contractor, the IRS and Department of Labor may classify that as worker misclassification. And if that contractor causes an issue while supporting your business, you will not be protected. Frankly, you could be liable — even though the VA company was the one who hired them. It's a legal zone with very real consequences: back taxes, penalties, and compliance violations.

Your Business Data Is at Risk

Contractors typically use their own equipment, store files locally, and work outside of the company's secure systems. That means client data, passwords, legal files, medical records, or financial information could be floating around unprotected and there's no guaranteed recourse if something goes sideways.

In contrast, W-2 employees are bound by the company’s security policies, signed confidentiality agreements, and can be held to specific protocols and standards.

When There's No Oversight, There's No Protections

Contractor-based VA companies often act as little more than matchmakers. They introduce you to a freelancer and step aside. If the VA disappears, underperforms, or mishandles something important, you’re left dealing with it.

When a VA is an employee, the company is legally responsible for their performance, conduct, and training. That’s a real safety net for your business. At Virtual Assist USA, we have insurance and bonding protections in these instances, as well as a whole leadership team that has your back.

Contractors are legally independent, meaning their work isn’t supervised or controlled in the same way as employees. That gives you less recourse if they mess something up on your behalf.

At Virtual Assist USA, our VAs are W-2 employees. That means we are legally responsible for their training, oversight, and conduct... not you.

With contractors, there’s no guaranteed training, no enforced SOPs, and no consistent standards across the board. Every contractor is a business of one — doing things their own way, on their own time.

As an employee team at Virtual Assist USA, the team is managed, trained, and held accountable to one standard: yours.

That’s how we operate at Virtual Assist USA: clear expectations, ongoing support, and performance oversight. You’re not rolling the dice with a random freelancer.

We’re Doing the Right Thing for Our Team, Too

The contractor model doesn’t just put clients at risk. What happens is that it hurts the VAs, too. For them, it means no job security, no benefits, and no career growth path.

That leads to high turnover, burnout, and disconnection — all of which you feel when your VA disappears or stops caring.

We take care of our team because we want them to stay. And they do:

• We offer retirement plans, paid holidays, bonuses, and flexibility.

• We invest in training and promote from within.

• Our retention rate is 5x higher than the industry average.

That stability directly benefits our clients. You get reliable, long-term support from someone who’s in it for the long haul, not just chasing side gigs.

Why We Don’t Do Contractors at Virtual Assist USA

About 10 years ago, we intentionally chose the more rigorous path of hiring only W-2 employees. It means we handle:

• Payroll taxes

• Benefits

• Training

• Supervision

• Compliance

So you don’t have to.

Our team is accountable to us, and we’re accountable to you. If you're trusting someone with your business operations, your client relationships, and your confidential data — don't leave it to a loosely affiliated contractor. Choose a company that’s structured to protect you.