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What You Need to Know When Hiring a Virtual Employee

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September 15, 2021

These days, it is very common for employers to hire virtual, home-based employees. Here at Steadfast, I’ve been hiring virtual employees for over 5 years! Hiring virtual employees has many benefits and almost every business model can adapt to support some, if not all employees to work remotely. 

Today, I want to give some of my biggest tips on hiring a virtual employee. Whether you’re making the shift from in-office to work from home, or you’re hiring virtual employees for the first time, there are some very important factors to consider. 

  • Are you hiring an employee or a contractor? Once you determine that, you need to know what the tax implications are. For a contractor, you want to keep track of how much you pay them and issue a 1099 at the end of the year. For W2 employees, if you hire an employee in another state, you will need to register for payroll taxes and in some states you are required to register with the Secretary of State and maybe even pay annual taxes in that state. 
  •  Do you have a good payroll system in place? Since you may not be local to your employees, you want to be sure your payroll system allows for direct deposit. You also want to track your payroll in a good bookkeeping system to be sure you deduct all wages and taxes you pay. I personally recommend Gusto!
  • Has the candidate you’re interviewing ever worked from home in the past? While working from home, it’s possible that more distractions will pop up. It’s important to know they are confident in their ability to focus and work independently and won’t get caught up in household chores or their favorite TV show during work hours. 
  • Conduct the interview via video call! This will help you determine how serious the candidate is about the position. Take note of how they present themselves, if they dress professionally, how their internet connection is, and what their surroundings look like. This is very important if this employee will be conducting calls with your clients. 
  • How do they communicate? Sending emails is an important part of the interview process. Make sure your candidate responds in a timely manner and has correct grammar. 

 

Check out this week’s video to learn more! 

Virtual Employee vs. Contractor

If you’re struggling to decide between hiring an employee vs. a contractor, check out my free on-demand contractor vs. employee training. This video is packed with information to help you become clear on whether the person you are hiring should be an employee or a contractor. 

Click here to check it out now!

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