Help me out - contractor vs. employee for overseas VA (real estate ops)?

Help me out - contractor vs. employee for overseas VA (real estate ops)?

Member since 2023 · 28 posts · 9 votes

I've been working with a VA from the UK for real estate admin work: pulling reports, updating spreadsheets, helping organize transaction docs, following up on basic tasks, and keeping parts of the back office moving. It started pretty casual, just a few tasks here and there.

But now the role is becoming steadier. Same person every week, regular hours, ongoing responsibilities, and honestly, they know our process better than some local vendors we’ve used.

I think we reached a point where it stopped being like a contractor setup and started looking more like an employee relationship. Plus, I would like to get this person even more involved in a couple of other areas of our work.

From what I understood reading this contractor/employee guide, the big difference is control and independence. An employee is more integrated into the company, with regular duties, direction, and a longer-term role. Okay, that much I knew. This part was something I had to look into in more detail: employees are subject to their country's labor laws and receive the benefits and entitlements required by local regulations. So I would be responsible for handling payroll taxes, social security contributions, and other mandatory employment obligations (if I go with this option, I think I will handle them through the EOR).

Now that I put all this in writing, it seems I actually solved my dilemma. I should switch to the employee setup, shouldn't I?

Still, let me ask you all - have you hired overseas real estate admin, transaction coordination, bookkeeping help, or property ops support? Did you keep them as contractors, move to a more formal employment arrangement, or use an EOR?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4mo

    We hire overseas on certain tasks and they are 1099 consultants. we give them a task to do and they get it done on their time etc. we do not restrict them to specific hours etc so they are not considered employees. 

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  • Member since 2023 · 28 posts · 9 votes
    4mo

    Thanks for your reply, appreciated. So it's a different situation than the one I'm in. For you, it makes perfect sense to approach it that way. 

  • Member since 2026 · 4 posts · 0 votes
    2mo

    The real question here is what both you and your VA want — there are real pros and cons to both.

    Keeping them as an independent contractor gives you more of an at-will arrangement: no benefits, no guaranteed cost-of-living increases, no PTO. Moving to an EOR means you're paying for all of that, plus the EOR's gross-up/markup on top.

    Depending on your VA's setup, staying independent might also work better for them — if they're building their own business on the side, moving to an EOR could remove tax advantages they currently have, and it may limit their ability to take on other clients if this is only part of their income.

    That said, moving to a true employment relationship is also a bigger mutual commitment — you're both signaling more stability and a longer runway together. That peace of mind is hard to quantify, but it's real for a lot of people.

    My advice: talk to your VA directly. It sounds like you have a great working relationship already, and they may have strong feelings one way or the other that are worth factoring in before you decide.

  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2mo

    OP still more research needed.

    Why do you want to make them an employee?  Is there a strategic reason?   

    Do you need a business there?

     Annual maintenance cost?
     
    Annual tax return cost?

    Weekly or monthly payroll admin cost?

    Which country?  If the employee relationship is terminated will you be liable for 2 years pay?

    What are grounds for termination in that country?  Murder, theft, but not performance based?  

    Had to work thru the above for our workers in Belize.  Also had to close some plants in Europe with a former employer.  

    Your costs above may be more than the employee makes.  

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2mo
    Quote from @Petar Stojanovski:

    I've been working with a VA from the UK for real estate admin work: pulling reports, updating spreadsheets, helping organize transaction docs, following up on basic tasks, and keeping parts of the back office moving. It started pretty casual, just a few tasks here and there.

    But now the role is becoming steadier. Same person every week, regular hours, ongoing responsibilities, and honestly, they know our process better than some local vendors we’ve used.

    I think we reached a point where it stopped being like a contractor setup and started looking more like an employee relationship. Plus, I would like to get this person even more involved in a couple of other areas of our work.

    From what I understood reading this contractor/employee guide, the big difference is control and independence. An employee is more integrated into the company, with regular duties, direction, and a longer-term role. Okay, that much I knew. This part was something I had to look into in more detail: employees are subject to their country's labor laws and receive the benefits and entitlements required by local regulations. So I would be responsible for handling payroll taxes, social security contributions, and other mandatory employment obligations (if I go with this option, I think I will handle them through the EOR).

    Now that I put all this in writing, it seems I actually solved my dilemma. I should switch to the employee setup, shouldn't I?

    Still, let me ask you all - have you hired overseas real estate admin, transaction coordination, bookkeeping help, or property ops support? Did you keep them as contractors, move to a more formal employment arrangement, or use an EOR?


    Started out using VAs and then switched to Remote Workers.

    IRS treats both the same - since they are not in the US or USA citizens, they are 1099.

    We do have ours sign a Contract that clearly identifies them as a contract worker. Also includes NDA and such. 

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