by Stuart Lisonbee
Most retailers agree: drop shipping, if used properly, is a huge time and labor saver.
But is it a money saver as well? It is often said that time is money. But just what is the true value of drop shipping?
We will attempt to answer that question in this article from a scientific approach, using logic to come to a conclusion as to what the value of drop shipping is for you.
The value of time is different for everybody. For Bill Gates, an hour of his time is so valuable you probably wouldn't ever be able to pay him enough for his time.
Sometimes here at Doba, we bring on interns. Usually they work without pay. What does the intern consider to be the value of their time? They are giving of their time, and getting no money in return. They consider their pay not as a present monetary figure, but as experience gained, which will in turn makes them more valuable to other companies. Thus it could be said that an intern is considering the value of their time as something that will be paid off in the future.
If I were to invest in the stock market, I would probably spend a good amount of time researching various stocks before deciding on what to invest my money in. I would then wait for a (perhaps very long) period of time before cashing out my stocks.
In such a case, I'm investing my time in the hopes of getting a future payoff for it. If I consider my time to be worth $50/hour, then my goal would be to get a $50 future return for every hour I spend doing research.
When using drop shipping to run part or all of your retail business, you save time by having somebody else track inventory as well as pull and package orders. Additionally, you don't spend any time running to the post office to have orders shipped.
In part 2 of this article, we'll discuss the actual monetary value of the time we just talked about.
Stuart Lisonbee is an eBay PowerSeller, eBay Certified Consultant, and former eBay employee. He currently works for Doba, a drop ship service provider, at http://www.doba.com


The Value of Virtual
While secretaries and administrative assistants have been around for years, the term "virtual assistant" is a relatively new term that has become popular along side the Internet. What is a virtual assistant? Also called a VA, a virtual assistant is the online equivalent of an office administrative assistant.
As independent contractors, virtual assistants work for their clients off-site, performing a variety of administrative tasks. Common duties include data entry, web design and maintenance, bookkeeping, word processing and transcription. While many virtual assistants offer basic office skills like these, others specialize in areas like accounting, research, mailings, marketing and public relations.
Because virtual assistants work off-site, often from their own home offices, businesses that hire them do not incur additional overhead expenses, payroll taxes or benefit payments. Instead, the business gains the experience and expertise of the virtual assistant while only paying for the services performed. This set-up can be particularly valuable to the small business owner or nonprofit that can't afford to hire additional staff. It can also be ideal for firms that need to fill employment gaps during peak times, maternity leaves and vacations.
How does it work? Once a virtual assistant has been selected, the hiring firm and the VA outline their terms. This is typically done via e-mail or telephone (e.g., virtually). The hiring firm spells out the work to be performed, standards of performance and the needed deadline. The virtual assistant quotes a price, or an hourly rate, for the work and her payment terms. Prices and rates vary based on the type of work, level of expertise required and the deadline. More complex projects or those that are needed right away will likely be more costly than simple tasks. Once an agreement has been made, the VA gets to work, contacting the hiring firm as needed with questions. Once the project has been submitted and approved by the hiring firm, the virtual assistant paid. This can also be done virtually through online payment systems like PayPal.
How can you find a virtual assistant? There are a number of professional virtual assistant associations accessible online including the International Virtual Assistants Association (IVAA), the International Association of Virtual Office Assistants (IAVOA) and the International Association of Virtual Assistants (IAVA). In addition to offering certification programs for virtual assistants, these associations often include online directories where you can search for virtual assistants. A simple Google search of the term "virtual assistant" will also yield millions of results.
The key is finding someone (1) who can perform the needed tasks on time; (2) who will communicate clearly and on a timely basis; (3) that will maintain your privacy and confidentiality; and (4) with whom you will enjoy working.
If you can accomplish these four goals with a virtual assistant, she can become a valuable part of your virtual team.


Payroll Puerto Rico, Unique Aspects of Puerto Rico Payroll Law and Practice
The Puerto Rico State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of the Treasury
Bureau of Income Tax
Intendente Alejandro Ramirez Bldg.
Paseo Covadonga, Stop 1
P.O. Box S-4515
San Juan, PR 00905
(787) 721-2020
http://www.hacienda.gobierno.pr/
Puerto Rico has no State Income Tax. Therefore, there are no State W2's to file, no supplement wage withholding rates and no State W2's to file.

The Puerto Rico State Unemployment Insurance Agency is:
Department of Labor and Human Resources
Bureau of Employment Security
Prudencio Rivera Martinez Bldg.
505 Munoz Rivera Ave.
Hato Rey, PR 00918
(787) 754-5262

The State of Puerto Rico taxable wage base for unemployment purposes is wages up to $7,000.00.

Puerto Rico has no provision of quarterly wages on magnetic media.
Unemployment records must be retained in Puerto Rico for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Puerto Rico State Agency charged with enforcing the state wage and hour laws is:
Department of Labor and Human Resources
505 Munoz Rivera Ave.
Hato Rey, PR 00918
(787) 754-2119
http://www.dtrh.gobierno.pr/

There is no provision for minimum wage in Puerto Rico.
The general provision in Puerto Rico concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week except under contract, custom, nature of work.

There is no provision of new hire requirements in the Puerto Rico law.

There is no provision of rules for direct deposit for Puerto Rico.

Puerto Rico has no Wage and Hour Law provisions concerning pay stub information except that employees paid by direct deposit must get a voucher showing all deductions.
Puerto Rico requires that employee be paid every 15 days.

In Puerto Rico there are no statutory requirements concerning the lag time between when the services are performed and when the employee must be paid.
Puerto Rico payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday.

Puerto Rico has no general provision on when voluntarily terminated employees must be paid their final wages.

There is no provision in Puerto Rico law concerning paying deceased employees.

There is no provision of when unclaimed wages should be paid in Puerto Rico.

There is no provision in Puerto Rico law concerning record retention of abandoned wage records.

There is no provision in Puerto Rico law concerning tip credits against State minimum wage.
In Puerto Rico the payroll laws covering mandatory rest or meal breaks are only that all employees must have 1-hour meal period after 3rd and before 6th hour of shift unless agreed otherwise.

There is no provision in Puerto Rico law concerning record retention of wage and hour records therefore it is probably wise to follow FLSA guidelines.

The Puerto Rico agency charged with enforcing Child Support Orders and laws is:

Child Support Enforcement Program
Department of Social Services
P.O. Box 3349
San Juan, PR 00902-3349
(787) 767-1500
Puerto Rico has no provisions for child support deductions.

Please note that this article is not updated for changes that can and will happen from time to time.

Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years,
the last fifteen in private practice. Mr. Read is the author of "Tax and Accounting Issues
in Forming a New Business."
To find professional payroll services at a budget price go to www.payrollonabudget.com
a paperless payroll company.
For a full service payroll bureau with CPA's on staff visit www.CustomPayroll.com .
See an excerpt of Mr. Read's interviews from William Shatner's "Heartbeat of America"
television show on the web sites linked above.