Virtual Assistant Financial and Legal Practices 2

Question 1

A US-based VA serving multiple clients is typically classified for tax purposes as what?

Accepted Answer

Independent contractor (1099)

Answer

W-2 employee

Answer

Corporate officer

Answer

Statutory employee

Question 2

Which IRS form does a US client send a VA who was paid $600 or more during the year?

Accepted Answer

1099-NEC

Answer

W-2

Answer

W-4

Answer

1040-EZ

Question 3

What document should a VA have a new client sign before starting paid work?

Accepted Answer

A signed contract or service agreement

Answer

A verbal handshake only

Answer

A social media post

Answer

A blank invoice

Question 4

An NDA primarily protects what in a VA-client relationship?

Accepted Answer

Confidential and proprietary information

Answer

The VA's hourly rate

Answer

The client's tax refund

Answer

The VA's vacation days

Question 5

As an independent contractor, a US VA is generally responsible for paying what tax that employers normally split?

Accepted Answer

Self-employment tax (Social Security and Medicare)

Answer

Corporate franchise tax

Answer

Estate tax

Answer

Import duty

Question 6

What is the main purpose of a VA sending an invoice to a client?

Accepted Answer

To formally request payment for services rendered

Answer

To file the client's taxes

Answer

To advertise services

Answer

To cancel the contract

Question 7

Why should a VA keep separate records of business income and expenses?

Accepted Answer

To accurately report taxes and claim deductions

Answer

Because clients require it weekly

Answer

To avoid signing contracts

Answer

To increase hourly rates automatically