Cryptocurrency Payroll Service Bitwage has partnered with the Human Relations Management Company and Human Relations Simply Efficient HR to help companies finance W2 employees and payroll taxes using cryptography. The initiative, which is launched today, January 16, 2019, is available in all 50 US states.
In essence, this partnership allows companies in the United States and Puerto Rico to fund their W2 payroll and payroll taxes in ether and bitcoins. On the other hand, employees can choose which percentage of their earnings will be paid in bitcoins or paid in fiat currency.
In addition to payroll funding, the service also provides US-based companies with the ability to meet the US government's human resource and payroll obligations to the employer.
According to Jonathan Chester, co-founder and CEO of Bitwage, companies that earn crypts often find it difficult to pay W2 employees and taxes, as "traditional payroll and wage tax systems are designed for the fiat world".
He added: "Companies with banking problems using cryptocurrency could hire employees only as contractors, because it was impossible to pay taxes on behalf of W2 employees in fiat." This new version of the product changes this. "
While some companies hold many cryptographic resources, they do not have the means to pay employees, freelancers, sellers or tax agencies with local currencies.
"We are allowing BTC or ETH to be part of it: the BTC or ETH is converted into fiat in order to interact with these traditional systems and the worker can choose to receive part of their BTC salary even at the end", Ha explained Chester.
He noted that Bitwage does not yet include the option for companies to pay in ETH, pay only. "However, now companies like ICO and decentralized applications with a lot of ether can hire people as W2 employees / offer benefits and stay in compliance" he said.
In addition, these companies can fund their cryptographic holdings and make payments to local and foreign vendors, with adoption in countries like India, Argentina, Great Britain, Brazil and others.
"While the partnership is for wages, taxes, profits based on US securities, we can also pay the rights to freelancers and sellers internationally," said Chester.
Live beta results
Bitwage has launched a beta version of this service for the Paxful peer-to-peer cryptography market, as it seeks to improve encrypted acceptance and fiat currency payments.
"Bitwill bridges the gap between Bitcoin and the traditional financial system," said Hayel Abbassi, a Paxful controller based in New York. "As a company that earns 100% of the bitcoin revenue, we are always looking for service providers that will accept the digital currency … Bitwage has recently formed a partnership with a traditional payroll company that integrates into their platform to provide these services ".