Bitwage partners with Texas-based PEO for cryptocurrency wage payments

Bitwage partners with Texas-based PEO for cryptocurrency wage payments
24 Jan 2019

Bitwage is partnering with a Texas-based professional employer organisation in a bid to expand the number of US customers that can pay their workforces in cryptocurrency.

According to CoinDesk, the payroll service provider’s deal with Simply Efficient HR will broaden out its active customer base beyond the 45 existing companies with which it works.

The service will enable clients to pay their salaried employees in cryptocurrency rather than just contractors as was previously the case. The tax portion of the transaction is converted into dollars and paid out in line with US regulations.

Bitwage’s chief executive Jonathan Chester said: “Previously you could pay contractors, but with W2 employees, you would have to figure out how to fulfil you fiat obligations to the government regarding the tax processing.”

He added that, while half of the company’s customers use its cryptocurrency service, the other half use it as a cross-border payment mechanism.

Bitwage, which was set up in 2014, currently employs 11 staff. It processes US$2.5 million each month and is funded by revenues, Chester said, adding that the firm was currently looking for capital to expand.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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Bitwage is partnering with a Texas-based professional employer organisation in a bid to expand the number of US customers that can pay their workforces in cryptocurrency.

According to CoinDesk, the payroll service provider’s deal with Simply Efficient HR will broaden out its active customer base beyond the 45 existing companies with which it works.

The service will enable clients to pay their salaried employees in cryptocurrency rather than just contractors as was previously the case. The tax portion of the transaction is converted into dollars and paid out in line with US regulations.

Bitwage’s chief executive Jonathan Chester said: “Previously you could pay contractors, but with W2 employees, you would have to figure out how to fulfil you fiat obligations to the government regarding the tax processing.”

He added that, while half of the company’s customers use its cryptocurrency service, the other half use it as a cross-border payment mechanism.

Bitwage, which was set up in 2014, currently employs 11 staff. It processes US$2.5 million each month and is funded by revenues, Chester said, adding that the firm was currently looking for capital to expand.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER STORIES THAT MAY INTEREST YOU

Could cryptocurrencies simplify global payroll?

India issues tax notices to 100,000 cryptocurrency investors 

Could blockchain restore confidence in employer pensions?

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