Virtual Assistants vs. Traditional Employees: A Complete Cost Breakdown

Hiring help is a big decision. For many small businesses, solo founders, and fast-growing startups, the choice often comes down to two options: hire a traditional employee or bring on a virtual assistant (VA).

While traditional employees offer in-house support, virtual assistants provide flexible, remote help at a lower cost. But how big is the difference?

In this guide, we break down the real costs of hiring a VA compared to a traditional employee, so you can make the best decision for your business.


1. Salary and Hourly Wage Comparison

Let’s start with the biggest expense: compensation.

Traditional Employee

According to the U.S. Bureau of Labor Statistics, the median annual salary for administrative assistants is $44,080, or roughly $3,673 per month
Source: BLS.gov

This does not include taxes, benefits, or overhead costs.

Virtual Assistant (via Remote Leverage)

Remote Leverage VAs typically cost between $600 and $1,500 per month, depending on the number of hours and complexity of tasks. Most businesses start with 20 hours per week, which provides consistent support without the full-time commitment.

Monthly Savings: $2,000 to $3,000+


2. Payroll Taxes and Benefits

Traditional employees require additional costs beyond their base salary.

Employer Payroll Costs (U.S.):

  • Social Security: 6.2%
  • Medicare: 1.45%
  • FUTA + SUTA (Unemployment Taxes): Varies by state
  • Workers’ Compensation Insurance: Varies


These add an average of 15 to 25 percent to the employee’s total compensation package.

Employee Benefits (Average Annual Costs):

  • Health Insurance: $6,500+
  • Paid Time Off: $2,000 to $5,000
  • Retirement Contributions: Often 3% of salary


Source: U.S. Chamber of Commerce

Virtual Assistant

  • No payroll taxes
  • No health insurance or retirement benefits required
  • No paid vacation or sick leave


Savings Estimate:
$10,000 to $20,000 per year


3. Office Equipment and Space

Traditional Employee

  • Desk and chair: $300 to $800
  • Computer: $800 to $1,500
  • Phone line, printer, supplies: $500+
  • Office space: Hundreds to thousands per month, depending on location


Virtual Assistant

  • Brings their own equipment
  • Works remotely
  • Requires no office space or furniture


Savings Estimate:
$2,000 to $5,000 per employee per year


4. Onboarding and Training Time

Hiring and training new employees can be time-consuming and expensive.

According to SHRM, the average cost-per-hire is around $4,700
Source: SHRM

It can take 1 to 3 months before a new employee reaches full productivity.

Virtual Assistant (Remote Leverage)

  • Pre-vetted and trained in common business tools
  • Familiar with CRMs, inbox management, project tools, and client communication
  • Ready to start immediately with minimal onboarding


Savings Estimate:
Weeks of onboarding time and thousands in hidden costs


5. Flexibility and Scalability

In-house staff are salaried regardless of productivity. According to Zippia, 89% of employees admit to wasting time daily.
Source: Zippia

  • Typically work 40 hours per week
  • Overtime laws apply
  • Harder to scale hours up or down based on workflow


Virtual Assistants

  • Start at 20 hours per week
  • Scale up or down as your business grows
  • Easier to adapt to seasonal or project-based needs


This flexibility is ideal for startups, solopreneurs, and service businesses that have changing workloads.


6. Productivity and Focus

Full-time employees often work in-office with distractions and unproductive hours.

The Reality:
According to a survey by Salary.com, 89% of employees admit to wasting time at work every day

Virtual Assistants

  • Are task-focused and outcome-oriented
  • Only bill for time spent working
  • Provide clearer value per hour


Hiring a VA means you are paying for results, not just hours logged.


Summary: Cost Comparison Table
CategoryTraditional Employee (Monthly)Remote Leverage VA (Monthly)Savings
Base Salary$3,673$800 (average)$2,873
Payroll Taxes & Benefits$1,000+$0$1,000+
Equipment & Office Space$250+$0$250+
Onboarding & TrainingHighMinimalTime + $4,000+
Total Monthly Cost$5,000+$800 to $1,500$3,500 to $4,500

Final Thoughts: The Smarter Financial Choice

Hiring a virtual assistant is not just a cost-saving move. It is a strategic decision that lets business owners scale with less risk, more flexibility, and higher productivity.

If you want to:

  • Lower your overhead
  • Increase support without a full-time hire
  • Free up time to focus on growth
  • Stay lean and agile


A virtual assistant from Remote Leverage can help you do it.


Ready to See the Difference for Yourself?

We match U.S.-based businesses with highly skilled, college-educated virtual assistants who are fluent in English and ready to support your business from day one.

✅ English-speaking virtual assistants
✅ Trained in the tools you already use
✅ Located in U.S.-friendly time zones
✅ Vetted, dependable, and affordable

👉 Click here to get started →

Save money. Save time. Grow smarter.