How Real Estate Agents Can Hire and Pay Assistants the Right Way
Introduction
Every successful real estate agent eventually hits the same wall: there just aren’t enough hours in the day.
You’re juggling showings, client calls, paperwork, marketing, social media, and accounting — while still trying to prospect for new business. The result? Burnout and lost opportunities.
The solution is simple: hire an assistant.
But here’s the problem: most agents don’t know how to hire, classify, or pay an assistant correctly. Should they be a W-2 employee or a 1099 contractor? What tasks can you delegate? How do you handle payroll taxes?
This guide will walk you through everything you need to know to hire and pay a real estate assistant the right way — legally, tax-efficiently, and in a way that grows your business.
1. Why Real Estate Agents Should Hire an Assistant
Signs You’re Ready
You’re closing 2–3+ deals per month but feel constantly behind.
You’re spending more than 10 hours/week on admin tasks.
You’re turning down leads or neglecting follow-ups.
You feel like you’re working “in” your business, not “on” it.
Benefits of Hiring
Time leverage: Focus on high-value tasks like lead generation and closings.
Consistency: Clients get better service when you’re not rushed.
Growth: Systems + delegation free you to scale.
2. Types of Assistants for Real Estate Agents
Not all assistants are the same. Decide what kind of help you need:
Administrative Assistant
Manages paperwork, scheduling, emails, transaction coordination.
Can be part-time or full-time.
Marketing Assistant
Handles social media, flyers, email campaigns, CRM updates.
Virtual Assistant (VA)
Often offshore, lower cost ($5–12/hr).
Handles data entry, scheduling, CRM, marketing tasks.
Licensed vs. Unlicensed Assistants
Unlicensed: Can handle admin tasks but NOT licensed activities (negotiations, showing homes).
Licensed: Can handle client-facing tasks (showings, open houses, contracts).
💡 Pro Tip: Start with unlicensed admin/VA to handle the back office. Add licensed assistants later if needed.
3. Employee (W-2) vs Contractor (1099) — The IRS Rules
This is the most important — and most misunderstood — decision.
W-2 Employee
You control their schedule, tasks, and how work is done.
Must be paid via payroll (subject to Social Security, Medicare, unemployment taxes).
Provides the most control, but higher compliance cost.
1099 Independent Contractor
Hired for specific projects/tasks.
They control how work is performed.
No payroll taxes withheld — you just issue a 1099 if paid $600+.
Why Misclassification is Risky
The IRS cracks down on agents who treat employees like contractors. Penalties include back taxes, fines, and interest.
💡 Example: If your assistant works daily, follows your schedule, and only works for you, they’re likely an employee (W-2) — not a contractor.
4. How to Pay Your Assistant the Right Way
Paying a W-2 Employee
Use a payroll provider (Gusto, ADP, QuickBooks Payroll).
Withhold federal/state income tax, Social Security, Medicare.
Pay employer payroll taxes (~7.65% of wages).
File quarterly payroll tax returns.
Paying a 1099 Contractor
Pay via bank transfer, check, or PayPal.
No taxes withheld.
Issue a Form 1099-NEC at year-end if paid $600+ ($2,000+ starting in 2026).
💡 Pro Tip: If you’re unsure, error on the side of W-2. It’s safer with the IRS.
5. How Much Should You Pay an Assistant?
Typical Pay Ranges (U.S.)
Virtual Assistant: $5–12/hr (offshore), $15–25/hr (U.S.-based)
Administrative Assistant: $18–25/hr or $35k–$50k annually
Licensed Assistant: $20–30/hr or $40k–$60k annually
Marketing Specialist: $20–30/hr
6. What Tasks Should You Delegate?
Transaction Management
Draft contracts, schedule inspections, coordinate closings.
Marketing
Manage social media posts, create flyers, update website.
Client Communication
Confirm appointments, send reminders, follow up after closings.
Admin/Operations
Track expenses, update CRM, manage calendar, handle emails.
💡 Pro Tip: Write a “Stop Doing List.” Every task under $25/hr should be delegated.
7. Tax Implications of Hiring an Assistant
W-2 Employee Wages: Deductible as business expense. Employer payroll taxes also deductible.
1099 Contractor Payments: Deductible as professional services.
VA Payments: Deductible if directly tied to your real estate business.
💡 Hiring an assistant isn’t just an expense — it’s an investment and a deduction.
8. When to Hire vs Outsource
Not ready for a full-time assistant? Consider outsourcing first:
Hire a transaction coordinator per file ($350–500).
Use freelancers for design and marketing.
Hire a part-time VA for admin.
As your business grows, move to a permanent assistant.
Conclusion
Hiring and paying an assistant the right way can transform your real estate career:
✅ Free up your time
✅ Increase your closings
✅ Provide better client service
✅ Reduce stress
✅ Build a scalable business
But do it wrong — misclassify, underpay, or skip payroll taxes — and it could cost you thousands in IRS penalties.
👉 Ready to build your team the right way? Schedule a call with The Agent’s Accountant and get expert help setting up payroll, bookkeeping, and tax strategy for your growing business.
