Payments and Payroll for Virtual Assistants: US & Singapore Options

Paying virtual assistants requires clarity on contractor vs. employee status, payment platforms, and tax/recordkeeping obligations. This tutorial covers practical options for US and Singapore-based engagements.

Choosing Contractor vs. Employee

• Contractor: more common for remote VAs; no payroll taxes withheld by employer.
• Employee: subject to payroll withholdings and benefits in most jurisdictions; consult local counsel.

Payment Platforms

• Wise: low-cost international transfers and local payouts.
• Payoneer: global payouts and local collecting accounts.
• TransferWise Business: simple multi-currency wallets.
• Traditional bank transfers: higher fees, slower.

US Considerations

• Issue Form 1099-NEC for contractors earning $600+ per year.
• Ensure contractor has W-9 on file.
• For employees, set up payroll provider and withhold taxes.

Singapore Considerations

• Contractors: treat as business-to-business engagements; GST considerations if applicable.
• CPF: only for employees who are Singapore citizens/permanent residents.
• Keep invoices and records for corporate tax filings.

Best Practices

• Use written contracts defining payment frequency, currency, and scope.
• Pay on a fixed schedule (weekly/biweekly/monthly).
• Keep expense reimbursement rules clear.
• Maintain bookkeeping records for tax time.

If you'd like, I can add a sample contractor agreement template and payment checklist to the repo.