Jan 19, 2019 14:30 UTC
Jan 19, 2019 at 14:39 UTC
50 US States Can Now Fund Employee Payroll Tax Using Bitcoin and Ethereum
San Francisco-based crypto payroll service provider Bitwage has tied up with a similar firm that also looks into other aspects of HR from Texas, called Simply Efficient HR, hoping to help fifty states of the US to find their employees’ Payroll Taxes and W2 employee payrolls using top cryptocurrencies Bitcoin and Ethereum.
According to their announcement, it seems that this is expected to help close the gap that exists in Bitcoin’s loop within the overall economic cycle.
How is that to be done? The Bitwage blog explains:
“Global leading cryptocurrency payroll service provider, Bitwage has always focused on “Closing The Loop” in the Bitcoin financial cycle. The financial loop works as such: Individual obtains Bitcoin, Individual pays merchant in Bitcoin for goods and services. Merchant pays employees with Bitcoin. When Bitwage first launched, the company’s goal was to close this loop, by allowing workers to receive any percentage of their wage in Bitcoin with or without their company signing up.”
With regard to using Bitcoin and Ethereum in funding of employees’ payroll, the invoice will be first generated in USD terms before the payroll is then funded by the use of these virtual currencies. The companies can also use the very same medium as they try to pay their taxes. In addition, the companies can use cryptocurrencies to pay employee benefits that include all the HR compliance services or most importantly, health insurance.
Explaining their rationale behind this partnership, the Bitwage blog post details:
“Operating of the Houston, Texas area, Simply Efficient HR is one of the fastest growing Administrative Service’s Organization (ASO) due to their innovative and scalable business model for Human Capital Management Solutions.As a result of this partnership, employees are now able to choose any percentage of their wage to be in USD or Bitcoin.”
The blog post also elaborates on how to use the service. It is a simple procedure as they can simply create a Bitwage account before going on to contact the Payroll and HR services support team, in order to add another account from the Simply Efficient HR database, on the Bitwage Account just created.
The service’s beta version had been launched in November, 2018 and the company has since worked with well-known cryptocurrency exchange Paxful. Paxful Controller Hayel Abassi had only positive thoughts about Bitwage as he said:
“Bitwage bridges the gap between bitcoin and the traditional finance system.”