Crypto Payroll Firm Bitwage Now Allows US Companies To Settle Payroll Taxes In Bitcoin And Ether

Announcements, News | January 21, 2019 By:

Crypto payroll and wage payment service Bitwage is teaming with payroll & human resources firm Simply Efficient HR to enable US-based companies to pay employees and payroll taxes funded in bitcoin and ether.

Founded in 2013, Bitwage helps companies payout to their distributed workforces and helps employees, freelancers and contractors receive their wages all over the world. It provides employers the ability to pay employees in cryptocurrencies and employees/freelancers the ability to receive wages in crypto without their employer or clients signing up.

Based in Texas, Simply Efficient HR claims to provide clients with efficient, affordable and complete options for payroll, human resources and benefits. Its services include payroll, tax reporting and payments, job costing, risk management and human resources, among others.

In an online post, Bitwage said that the partnership with Simply Efficient HR will allow companies in all 50 US states plus Puerto Rico to fund their W2 payrolls and payroll taxes in ether and bitcoin. Employees will be able to choose any percentage of their wage to be in USD or bitcoin. In addition to funding payroll, US companies will be able to pay for benefits, such as health insurance, as well as HR compliance services.

Jonathan Chester, Founder and President of Bitwage, said that the partnership has been live in Beta since November 2018 with it’s first customer, peer-to-peer bitcoin marketplace Paxful.

“Bitwage bridges the gab between bitcoin and the traditional finance system,” said Paxful Controller Hayel Abbassi said. “As a company that earns 100% of revenue in bitcoin, we are always looking for service providers who will accept digital currency. Paxful has a significantly sized team in the states and we need to pay them as employees on payroll, not as contractors. Bitwage has recently formed a partnership with a traditional payroll company who integrates into their platform to provide these services. Paxful simply sends bitcoin to an address, and our employees receive net checks with the proper federal and state taxes withheld.”

Chester said that while the new service does not yet include the option for companies to pay out in ether, initial coin offerings and decentralized applications with a lot of ether will be able to hire people as W2 employees/offer benefits and stay in compliance.

“Companies with banking issues using cryptocurrency could only hire employees as contractors, because paying taxes on behalf of W2 employees in fiat was impossible,” Chester said. “This new product release changes this.”