VA vs. Full-Time Employee: The True Cost Comparison for 2026
You're looking to hire someone to take work off your plate. The question isn't whether you need help — it's how much that help should actually cost. Most business owners think they know the cost of a hire. They see the salary number and stop there. But that number is only the beginning.
Here's the complete, honest breakdown of what a full-time employee actually costs your business in 2026 — and how a virtual assistant compares.
The Number Everyone Gets Wrong
When you post a job at $50,000 per year, you're not actually paying $50,000. You're paying significantly more — and the gap between what you think you're paying and what you're actually paying is where most small businesses quietly hemorrhage money.
According to the Society for Human Resource Management (SHRM), the true cost of a full-time employee is 1.25 to 1.4 times their base salary at minimum — and that's before you account for office space, equipment, training, or the hidden cost of employee turnover.
Let's break it down.
The Full Cost of a Full-Time Employee in 2026
1. Base Salary
The national median salary for an administrative or operations hire in the US sits at approximately $45,000–$55,000 per year (Bureau of Labor Statistics, 2025). For this breakdown, we'll use $50,000 as our baseline.
2. Payroll Taxes
The US federal government requires employers to pay:
- Social Security tax: 6.2% of salary
- Medicare tax: 1.45% of salary
- Federal Unemployment Tax (FUTA): up to 6% on first $7,000
- State unemployment taxes vary by state (average 2.7%)
Total payroll tax burden: approximately $5,500–$7,000/year on a $50,000 salary
3. Health Insurance
According to the Kaiser Family Foundation 2025 Employer Health Benefits Survey, the average employer contribution to employee health insurance is:
- $8,435/year for single coverage
- $23,968/year for family coverage
For this breakdown, we use the single coverage figure: $8,435/year
4. Retirement Contributions
If you offer a 401(k) match (standard practice for competitive hiring), the average employer match is 3–6% of salary.
At 4% match on $50,000: $2,000/year
5. Paid Time Off
The average US full-time employee receives:
- 10–15 vacation days
- 8–10 sick days
- 10–11 federal holidays
That's approximately 28–36 paid days per year — or 7–9 weeks of salary you're paying for zero output.
At $50,000 salary: $5,400–$6,900/year in PTO cost
6. Equipment & Software
Every new hire needs:
- Computer/laptop: $1,000–$2,500 (amortized over 3 years = $333–$833/year)
- Software licenses (Office, Slack, CRM, etc.): $500–$2,000/year
- Phone, peripherals, office supplies: $300–$800/year
Total: $1,133–$3,633/year
7. Office Space
If your employee works in an office, the average cost per desk in the US is $10,000–$15,000/year (including rent, utilities, internet, maintenance).
Even in a hybrid arrangement, estimate $3,000–$7,500/year per desk.
8. Recruitment & Onboarding
SHRM reports that the average cost to hire a new employee is $4,700 — and that's for roles paying under $60,000. For specialist roles, it climbs to 3–4x the annual salary.
Onboarding and training typically adds another $1,000–$3,000 in lost productivity and training time during the first 90 days.
9. Turnover Risk
The US average employee tenure is 4.1 years (BLS, 2024). When an employee leaves, SHRM estimates replacement costs at 50–200% of annual salary.
Annualized turnover risk: $6,000–$12,000/year
The Full-Time Employee Cost Summary Table
| Cost Item | Annual Cost |
|---|---|
| Base Salary | $50,000 |
| Payroll Taxes | $6,000 |
| Health Insurance | $8,435 |
| Retirement Match (4%) | $2,000 |
| Paid Time Off | $6,000 |
| Equipment & Software | $2,000 |
| Office Space (hybrid) | $5,000 |
| Recruitment/Onboarding | $1,500 |
| Turnover Risk (annualized) | $8,000 |
| TOTAL TRUE COST | $88,935/year |
"A $50,000 salary costs your business anywhere from $66,800 to over $108,000 per year by the time you account for every real expense." — SHRM, 2025
The Cost of a Virtual Assistant in 2026
Now let's look at the other side of the equation.
A Philippines-based virtual assistant hired through a reputable VA agency like KeenlyVAs typically costs:
| VA Type | Monthly Cost | Annual Cost |
|---|---|---|
| Part-time VA (20 hrs/week) | $600–$1,100 | $7,200–$13,200 |
| Full-time VA via agency | $1,200–$2,200 | $14,400–$26,400 |
| Specialist VA (automation, GHL) | $1,500–$2,800 | $18,000–$33,600 |
What's included in that price:
- ✅ Dedicated VA assigned to your business
- ✅ No payroll taxes — you're not the employer
- ✅ No health insurance obligation
- ✅ No paid time off costs
- ✅ No equipment or software costs
- ✅ No office space required
- ✅ No recruitment fees — agency handles matching
- ✅ NDA protection from day one
- ✅ Replacement guarantee if the fit isn't right
Side-by-Side Comparison
| Full-Time Employee | KeenlyVAs VA | |
|---|---|---|
| Annual Cost | $66,800–$108,000 | $14,400–$26,400 |
| Payroll Taxes | ✅ You pay | ❌ Not applicable |
| Health Insurance | ✅ You pay | ❌ Not applicable |
| Paid Time Off | ✅ You pay | ❌ Not applicable |
| Equipment | ✅ You provide | ❌ Not applicable |
| Office Space | ✅ You provide | ❌ Not applicable |
| Recruitment Cost | $4,700+ | $0 |
| Time to Start | 4–8 weeks | 48 hours |
| Replacement if needed | Rehire process | Included |
| NDA Protection | Optional | Standard |
Savings: 60–78% reduction in annual cost
Prefer a quick side by side breakdown? See our full virtual assistant versus in house employee comparison page, with the verdict on when each one wins.
"But Is the Quality the Same?"
This is the most common objection — and it deserves an honest answer.
No, a VA is not identical to a full-time in-house employee. There are differences:
Where VAs excel:
- Repetitive, process-driven tasks (admin, data entry, scheduling, CRM updates)
- Specialized digital skills (automation, social media, bookkeeping, design)
- Tasks that can be done asynchronously
- Work that benefits from documentation and systems
Where full-time employees may have an edge:
- Roles requiring constant in-person presence
- Highly sensitive decision-making that requires deep company context
- Physical tasks or on-site operations
The key insight: most of what drains your time as a business owner falls squarely in the first category. Email management, calendar scheduling, CRM updates, invoice tracking, social media, lead follow-up — these are all tasks where a skilled VA is not just adequate, but excellent.
What Businesses Are Actually Doing in 2026
The shift toward virtual assistance is accelerating. According to Grand View Research, the global virtual assistant services market was valued at over $4.12 billion in 2024 and is projected to grow at 24.8% CAGR through 2030.
Businesses aren't just experimenting with VAs anymore — they're restructuring their entire support operations around them. The economic pressure of 2025–2026 has accelerated this trend, with small and mid-size businesses leading the shift.
The question is no longer "should I hire a VA?" — it's "why haven't I already?"
The Bottom Line
A full-time employee earning $50,000 costs your business $66,800–$108,000 per year.
A full-time dedicated VA through KeenlyVAs costs $14,400–$26,400 per year.
That's a saving of $52,400–$83,600 every single year — money that goes back into growing your business, not sustaining your overhead.
References
- Society for Human Resource Management (SHRM). (2025). The True Cost of Hiring. shrm.org
- Bureau of Labor Statistics, U.S. Department of Labor. (2025). Employer Costs for Employee Compensation. bls.gov
- Kaiser Family Foundation. (2025). 2025 Employer Health Benefits Survey. kff.org
- Grand View Research. (2024). Virtual Assistant Services Market Size Report. grandviewresearch.com
- SHRM. (2024). Average Cost Per Hire Benchmark. shrm.org
Frequently Asked Questions
How much does a virtual assistant cost per month?
A Philippines-based VA through a reputable agency typically costs $1,200–$2,200/month for full-time support. This compares to $5,500–$9,000+/month for a full-time in-house employee when all costs are included.
KeenlyVAs full-time plans start at $1,599/month, and part-time plans start at $899/month — so you get dedicated support well below the typical agency range.
What is the true cost of hiring a full-time employee in 2026?
According to SHRM, the true cost of a full-time employee earning $50,000/year ranges from $66,800 to $108,000 annually when you include payroll taxes, health insurance, retirement contributions, PTO, equipment, office space, and recruitment costs.
Is a virtual assistant cheaper than a full-time employee?
Yes. Businesses typically save 60–78% by hiring a VA through an agency compared to a full-time in-house employee. VAs require no benefits, no office space, no payroll taxes, and no equipment costs.