A direct contractor arrangement means you hire the assistant yourself, agree terms in writing and pay them directly. It suits part-time, project-based or flexible work and gets you started quickly. An employer of record (EOR) is a third-party company that legally employs the worker on your behalf and runs payroll for a fee, while you direct the daily work. It suits full-time, long-term roles you manage like staff. The right choice depends on the role, the hours and where you and your hire are based. This is general information, not legal advice, so check with a qualified adviser. On DonutJobs you find, shortlist and agree terms with your hire, then pay them directly.
The Two Routes in Plain English
Direct contractor
You agree the scope, hours, rate and payment terms in writing, and the assistant looks after their own taxes, equipment and internet connection. You pay them directly. This is how many virtual assistants work with clients, and it is how DonutJobs hiring works in practice: you choose the person, agree the terms and pay your hire directly, with no commission on wages.
Employer of record
An EOR becomes the legal employer of the worker where they live. It issues the employment contract, runs payroll and manages statutory benefits, and you still decide what work the person does day to day. You typically pay the EOR a monthly fee on top of the worker's total employment cost, and services vary by provider, so ask for a full quote before you compare.
A Quick Comparison
- Who the legal employer is: With a direct contractor, nobody, because the assistant is self-employed. With an EOR, the EOR provider.
- Paperwork: A contractor agreement between you and the assistant, or a local employment contract plus a service agreement with the EOR.
- Cost to you: The rate you agree plus transfer fees, or total employment cost plus the EOR service fee.
- Speed to start: A direct hire can start as soon as terms are agreed. An EOR needs setup and onboarding first.
- Best for: Direct contractor suits part-time, project and flexible arrangements. An EOR suits full-time, long-term, closely managed roles.
When Each Route Usually Fits
A direct contractor route tends to fit when you need part-time or flexible hours, the assistant can work for other clients too, they control how and when they complete the work within agreed deliverables, and you want a fast start. It also suits a trial or short-term engagement.
An EOR is worth pricing when the role is full-time and long term, you set the schedule, tools and methods closely, or you want to offer statutory benefits through a specialist. Classification rules differ by place, and authorities usually look at how the relationship works in practice, not only the label in the contract. That is the point to check with a qualified adviser who knows the places involved.
What to Ask an Adviser or Provider
- Would this arrangement be treated as contracting or employment where the assistant lives?
- What taxes, contributions or filings apply to me and to the assistant?
- What is the full monthly cost under each route, including all fees?
- What are the notice and termination rules?
- Who owns the work, and how is confidential data protected?
DonutJobs' guide to virtual assistant versus contractor gives a plain-language view of the same choice.
Scope the Role Before You Choose a Route
The route you choose depends on the job, so write the job down first. List the tasks, the weekly hours, the hours the person must be reachable and the tools they will use. A part-time inbox and calendar assistant who works to deliverables looks very different from a full-time support lead on a fixed schedule. Once the role is clear, your adviser or provider can answer the questions above quickly, and your job post will attract people who fit the arrangement you intend to offer.
Hire Your Assistant Through DonutJobs
If the direct route fits, this is the quickest way to start.
- Create your account and post your role with hours, tasks and tools. Your first post is free.
- Shortlist candidates from profiles that show results from an internet and hardware audit, an English communication test, a live typing speed test and a recorded voice sample.
- On Agency or Pro, track candidates in the ATS with notes, and use in-app chat to keep every conversation in one place.
- Run a trial task, then choose your hire and agree a written contractor agreement.
- Agree currency, frequency, method and who pays transfer fees, then pay your hire directly. On paid plans, time tracking shows the hours behind each payment.
Why Direct Hiring Starts Fast on DonutJobs
The direct route works best when you can see who you are hiring before you commit. DonutJobs gives you a pool of 50,000+ pre-tested virtual assistants, with test results shown on the profiles you open, and a free first post so you can start without a commitment. On Agency or Pro, unlimited talent-pool outreach lets you message candidates you like instead of waiting for applications, and Magic Search and Swipe moves you through profiles quickly.
The cost model is simple: no per-hire fee, no placement fee and no commission on wages, and you agree the rate with your hire. DonutJobs reports an average of about 48 hours from search to signed offer. DonutJobs' guide on how employers pay virtual assistants hired through DonutJobs covers common payment set-ups, and the candidate verification checklist lists what to confirm before you send an offer.
Practical Use Cases
A founder hiring a part-time inbox assistant may choose the direct route. A company hiring a full-time support lead on a fixed schedule may ask an adviser about an EOR. An agency testing a new assistant can start with a clear agreement and review the arrangement after the trial. If you want hours without managing a person, DonutJobs also offers managed VA in 80 hour and 160 hour monthly packages.
Common Mistakes to Avoid
A common mistake is assuming an EOR is always the safer option or always unnecessary. Neither is true, so decide by role. Another is relying on the contract label alone. A third is forgetting the assistant's side: tax and contribution rules apply to them too. Finally, data protection rules may apply if the assistant handles customer data, so get advice on that too.
FAQ
What is an employer of record?
An EOR is a company that legally employs a worker on your behalf where they live, handling payroll and statutory benefits, while you direct the day-to-day work.
Is a virtual assistant usually a contractor?
Many work as independent contractors, especially part-time. Whether that suits your arrangement depends on local rules and how you work together.
What does DonutJobs help me do?
DonutJobs helps you post roles, search and shortlist pre-tested talent, chat with candidates, track hours on paid plans and hire. You agree terms with your hire and pay them directly.
Which is cheaper?
The direct route usually costs less because there is no EOR fee, but compare full quotes and consider your own time.
How do I start hiring?
Create a free account, post your role and review applicants. Your first post is free, with one active post and up to 10 applications.
There is no single right answer. Consider the hours, the control you need, the places involved and the length of the engagement, then get proper advice before work begins.
When you know how you want to engage, start with pre-tested talent. Create your free DonutJobs account to post your role, or browse the talent pool.