Tax Requirements - Virtual Assistant
One of the many advantages of using TaskBullet for your employee needs is that you should not be required to file US tax forms (W-2, 1099-MISC, etc.) for those employees.
When your VAs are paid through TaskBullet, we supply the following:
- employ the (VA) and assign them to provide services to you,
- handle all of the withholding and payment of taxes, and
- provide the worker with all the proper gov. files for them to file taxes with their respective gov.
Note: You should determine the proper classification of all of your U.S.-based VAs based on IRS guidelines and other federal, state, and local regulations.
If you classify your VA as an independent contractor, you don’t need to file a Form 1099-MISC for your payments to them through TaskBullet. While all freelancers submit their information for Form W-9 (US-based) or Form W-8BEN (international) to TaskBullet, TaskBullet doesn’t send VA's Form 1099-MISC, either. We do file a Form 1099-K when applicable (to freelancers who are U.S. Persons and receive over $20,000 with more than 200 transactions through TaskBullet).
Why don’t I have to send a 1099-MISC?
Under the Internal Revenue Code Section 6050W, you don’t need to file Form 1099-MISC for VAs paid through TaskBullet because you’re not paying your VA directly.
When you pay your VA through TaskBullet, you actually pay TaskBullet Inc. TaskBullet Inc. is required to report the payments we remit to your VA to the Internal Revenue Service (IRS) on Form 1099-K, in accordance with IRS regulations.
Even if your VA does not receive enough payments for TaskBullet to file a Form 1099-K for them, you still don’t file a 1099-MISC because you’re actually paying a TaskBullet rather than your VA.
BUCKET SYSTEM vs. Employee
Sure, you could hire an ordinary employee to help grow your business, but do you really have enough small tasks to fill up 40 hours per week or even 20 hours per week every single week? If not, that employee will be spending downtime on your dime.
TaskBullet has eliminated this problem with what we call the BUCKET SYSTEM. Your remote employee will clock in when you need them and clock out when you don't. (Learn how it works here) With a remote personal assistant, you pay for the hours you need and nothing more. You'll save money on not having to provide employee benefits, office space, office supplies (computer, desk, coffee, etc.); oh, and did I mention downtime?
Your remote personal assistant will come with his or her own supplies, a strong education (TaskBullet virtual assistants have university degrees), and deep professional background. When you hire a virtual sales assistant from TaskBullet, you are also assigned a project manager to ensure that everything runs smoothly. What are you waiting for? Hire a remote personal assistant today and get your time back!