Cryptocurrency payroll and HR company Bitwage has announced a rollout of new payment tools for businesses executives claim “closes the loop” in Bitcoin salaries for W-2 employees in the US.
Through a partnership with Texas-based HR firm Simply Efficient HR, Bitwage now offers client businesses a way to offer salaries in Bitcoin and Ethereum to regular payroll employees.
The move is significant for Bitwage’s US customer base, as it means companies can now pay employees with support for W-2 salary reporting obligations. For those that aren’t familiar with the W-2 form. It’s what separates an employee from a contractor and an actual employee within the company. Actual employees within the company have the rights to benefits such as health insurance and other coverages.
According to a blog post January 16, Bitwage has been testing its new feature in beta mode since November.
However this isn’t a new system that Bitwage is launching.
The option to pay employees in cryptocurrency whether in the form of their full salary or as a portion of it has existed via Bitwage since 2014. In 2016, the company expanded its services beyond the US into Europe. The new partnership is just a rollout of new payment tools to make it easier for executives to pay their staffs in Bitcoin or Ethereum.
How does it work?
- Company signs up to Bitwage.
- Company reaches out to Bitwage support for Payroll & HR services.
- Company receives personalized account management from Simply Efficient HR team.
- Company adds Simply Efficient HR account on Bitwage.
- Simply Efficient HR invoices Company through Bitwage for USD needed to fund payroll taxes and employee payrolls.
- Company accepts invoice and funds payroll in BTC or ETH.
- Taxes and Workers get paid.
More recently the cryptocurrency community has begun asking whether retail adoption of Bitcoin might hinge on more people choosing to receive their earnings in the cryptocurrency.
Leading the argument was Francis Pouliot, CEO of Bylls.com, a service allowing Canadian businesses to pay their bills in Bitcoin.
“Merchant adoption won’t take off until people get paid in Bitcoin,” he wrote on Twitter at the time.