That’s the topic of a recent article on the USA Tax Aid blog here: Are Virtual Assistants Employees or Independent Contractors?
It reinforces something I’ve been telling folks all along about those team/multi VA businesses: ICs are not legally part of your team/business and they shouldn’t be listed as such on your website.
What they don’t seem to be able to grasp is that there are legal implications in portraying someone as part of your team.
Someone is not part of your team unless they are an actual employee and if you insist on calling them that, you are going to put yourself smack dab on the radar of the IRS.
Which is why the “team/multi VA” term is so idiotic.
If all they are doing is farming out their work and clients to other companies, there is already a (proper) term for that. It’s called subcontracting.
And those people, in order to be considered independent contractors running their own businesses, are not part of their team.
Regardless of your position on subbing out your client work/relationships, the fact is that sub is not legally part of your team. You don’t get to tell them when/where/how and you certainly don’t get to dictate hours and pay. And if you do, then you are going to quickly find yourself owing money and facing a great deal of hassle that could bankrupt your business.
Subcontractors do not need to be and shouldn’t be on your website.
It’s not about depriving them of “credit.” If they take on a subcontracting job, they don’t get credit. They are doing the work on behalf of your company. It’s your company whose name goes on the work. That’s just how subcontracting works.
You don’t have to like it. But if you want to argue about it, take it up with your tax authority. I think you’ll be set straight real quick.
This is also another reason why you (or any business owner) should NOT submit resumes and references: because you then give the wrong appearance that you are an employee applying for a job/position.
That’s NOT how business owners market.
Not talking about this and getting the story straight is as stupid, irresponsible and unethical as telling people they don’t have to pay their taxes.