Companies now have an easy platform through which they can pay their employees using cryptocurrency. Bitwage has teamed up with a payroll company to facilitate crypto payroll payments and already has 45 companies signed up to use the system. In an exclusive with CoinDesk, the company’s CEO, Jonathan Chester, indicated, “This is a lifeline for companies to pay their people compliantly.”
To merge crypto and payrolls, Bitwage partnered with Simply Efficient HR out of Texas. The deal will allow U.S. employers to cover not only payrolls, but payroll taxes and other monetary benefits using crypto, as well. All applicable taxes are converted into dollars and then paid out in compliance with the policies of state and federal tax entities in the country.
Adds Chester, “Previously you could pay contractors, but with W2 employees you would have to figure out how to fulfill your fiat obligations to the government regarding the tax processing.”
Among the companies to embrace Bitwage is Paxful, the peer-to-peer exchange. It began using the system last November and the company’s controller, Hayel Abbassi, explains in a statement, “Bitwage bridges the gap between bitcoin and the traditional finance system. Paxful simply sends bitcoin to an address, and our employees receive net checks with the proper federal and state taxes withheld.”
Bitwage launched in 2014 and has 11 full-time employees. While its internal workforce does not rely solely on the crypto payroll platform, Chester points out that some of the employees receive up to 15% of their salaries in digital currency. The company reportedly processes around $2.5 million in monthly volume and is funded by revenues as it explores additional expansion capital.
Around 50% of the firm’s customers are businesses that operate in the crypto industry and many of its customers use Bitwage as a cross-border payment solution. Chester adds that the service could be extremely beneficial to companies that have a lot of crypto reserves and states, “If you work at a company where you do have banking issues, it’s pretty easy to see the value that cryptocurrency brings.”
Bitwage is the perfect candidate for a crypto such as Bitcoin SV (BSV). BSV offers extremely low fees, large scaling capabilities, a growing network of retail partners and maturity as a digital currency that make it the most useful and versatile option among the world’s crypto offerings.
The Genesis protocol upgrade on February 4, 2020 is a monumental step in the history of Bitcoin, and will see BSV returned as close as possible to the original protocol as envisioned by Satoshi Nakamoto. Visit the Genesis Hard Fork page to learn more.
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