The magic is done through the Wagepoint online app, which can “handle direct deposits, government remittances / reporting and all year-end reporting for both salaried and hourly employees.
Shrad Rao, CEO of Wagepoint, told CCN that three employees from one company have chosen to receive their pay in bitcoin since the service went live Monday. He added that they have been contacted by around 20 companies over the last few months who have shown interest in their bitcoin payroll services.
The company began offering their services to Canada since November 2013, and Wagepoint says ten companies are so far signed up to receive pay in bitcoin. So far, Wagepoint has paid $75,000 to Canadian employees. “We have to launch most services country by country because the tax codes for each country are very distinct from each other,” said Rao.
“The thing about ours is that unique is we are making sure that the employees are meeting all of their tax obligations – we’re handling all of that.”
Rao said most choose to receive their full salary in bitcoin, but employees have the option of choosing to have any percentage of their net pay converted to bitcoin.
Wagepoint first debits the company bank account for the net amount, pays all of the necessary taxes before converting to bitcoin, and then directly deposits the net amount into the employee’s personal bitcoin wallet.
“From that perspective we are keeping everyone happy. The government is satisfied, the employer is satisfied and the employee is meeting all of their tax obligations,”
Companies interested in using the service can sign up on the Wagepoint site in what seems to be a simple process, and employees still receive their bitcoin on payday with no extended wait times.
“For us, choice is a very important factor, and if you think about it, you have many choices in most parts of life, from custom shoes to m&ms, but when it comes to payroll and how you get paid, that’s been stuck in the stone age for a long time. So the bitcoin thing is a matter of giving employees a choice,”
Rao further explained.
Since Wagepoint was founded, they have processed a total of $120 million in fiat salaries for various companies. Wagepoint uses the Google Ventures-backed Buttercoin exchange in the US and CAVIRTEX in Canada.
A couple of other bitcoin payroll services are currently under development, including BitPay’s payroll API which is currently available to employers in Georgia or South Carolina, but Rao said from what he hears, some competitors may experience some difficulty complying with tax obligations.
Featured image from Shutterstock.
Last modified (UTC): December 17, 2017 04:45