I want to pay my employees in btc \ stacker news ~bitcoin

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3488 sats \ 43 comments \ @bzzzt 6 Mar bitcoin

Hi, I want to pay employees in btc.. im thinking through the logistics.. One thing i thought of, if i pay my employee $500 worth of btc, i simply issue them a paystub reflecting the $500 was paid to them, and that will flow through to my payroll software generating accurate w2 for IRS reporting. but i pay them the btc out of band of my payroll software and manually enter into quickbooks ( not the end of the world )...but i think there isnt any reason my employee receiving the btc would have a papertrail with the IRS for receiving the btc...which is nice. just the papertrail reflecting taxable wages earned ( unless like a wire level investigation was done to determine my employee received $500 in btc and didnt report selling it or owning it on their tax return).

Anyone ever done this with a US company and wanna gimme tips or resources? or is currently doing it? is this just not a good idea for a US business operating in the compliant economy? much appreciated 🤙

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244 sats \ 0 replies \ @DarthCoin 6 Mar freebie

You can do it directly or through Bitwage. Bitwage have a platform for employers and also for employees. And you can have employees worldwide. I wrote a guide here: https://darthcoin.substack.com/p/be-paid-in-bitcoin-using-bitwage

33 sats \ 0 replies \ @Monotone 6 Mar

Need more employers who pay directly in BTC

98 sats \ 2 replies \ @Luis 6 Mar

Have you look into https://zaprite.com ? They offer this service.

1 sat \ 0 replies \ @bzzzt OP 6 Mar freebie

i dont see anything on their website regarding paying employees, seems to be an integration for selling stuff in your store for btc.

0 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

i havent, ill look into it.

76 sats \ 3 replies \ @doofus 6 Mar

I like your progressive approach. When you pay employees in Bitcoin, the IRS considers cryptocurrency as property for tax purposes. This means that employees receiving BTC as payment are subject to income tax on the fair market value of the BTC at the time of receipt. Employers must report this payment on W-2 forms in USD. It's imperative to accurately report the USD equivalent of the BTC paid at the time of each payment. To ensure compliance with IRS requirements, you must document how you determined the fair market value of the Bitcoin at the time of the payment.

101 sats \ 0 replies \ @fiatbad 6 Mar

fair market value of the BTC

I don't see any "fair" about their fiat scam.

0 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

interesting, thank you

0 sats \ 0 replies \ @Luis 6 Mar

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50 sats \ 4 replies \ @mo 6 Mar freebie

Wouldn’t be better to ask your employees if they agree or not first? And maybe apply this only to the ones that agree?

Second point is compliance: do you really need to declare ITS you paying them in BTC? What if you treat it as a redeemable gift card worth of 500$ they can redeem if they want to? Azte.co does just that. For you will be an expense, because you are buying something you can detract later on tax season, and same for your employees: they don’t have to declare if they redeemed the gift card or not.

Maybe am wrong… Thoughts?

0 sats \ 0 replies \ @fm 6 Mar

Azte.co vouchers sound a good solution.

0 sats \ 2 replies \ @bzzzt OP 6 Mar freebie

yes i woukd certainly check emplpyee desire before implementing.. already some interest..

i dont know the second thing, my hope would be that i just state the USD equivalent of what the employee was paid in wages, and do not need to document that they were paid in btc.. but as i explore this im feeling like the best route is just to pay em in fiat and maybe provide education opportunities for his to buy and hold btc, if anything.

46 sats \ 2 replies \ @TheBTCManual 6 Mar

Can't be sure about US rules, I don't see why the settlement makes a difference once you pay and have a paper trail for your business but hey I could be way off base

Strike has a business app you can sign up for if you're looking for a dashboard to manage this but not sure if they have integration with accounting software, so you'll likely need to do this manually inputting into Quickbooks

You can try using a company like - https://www.bitwage.com/ if you're open to involving a third party and https://bitpay.com/send/payroll/ also offers the service and maybe they'll be able to direct you on local rules

0 sats \ 0 replies \ @DarthCoin 6 Mar

Please stop recommending Bitpay. They are the enemy of Bitcoin !

0 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

thanks. i think I'm concluding that its probably best just to pay people in fiat and offer education opportunities so they can choose to buy on their own. i appreciate all the comments.

46 sats \ 1 reply \ @riberet19 6 Mar

But I have a question, would such employees accept BTC as payment?

0 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

i have an employee that is pretty into btc but i havent gotten that far down the thought path.

31 sats \ 1 reply \ @grayruby 6 Mar

Doesn't strike offer a service for this?

0 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

they offer a product where my employee could receive direct deposit and have the fiat converted to btc in the strike app. my preference would be to pay them directly with btc and not into a custodial service.

21 sats \ 2 replies \ @OT 6 Mar

Lightning

Pay every hour

20 sats \ 0 replies \ @f6287b82CC84bcbd 6 Mar

unless the business has btc reserves through sales I would just bitwage.

otherwise you are setting yourself up for an accounting headache.

0 sats \ 0 replies \ @TNStacker 6 Mar

👀

10 sats \ 0 replies \ @bordalix 6 Mar

check https://www.bitwage.com/

1 sat \ 2 replies \ @fiatbad 6 Mar

I want to work for you. And I'll work harder knowing I'm being paid in Bitcoin. Real value-4-value.

Hiring?

0 sats \ 1 reply \ @bzzzt OP 6 Mar freebie

haha, maybe in the future but shooting from the hip having hired my first 3 employees for the first time 😅

1 sat \ 0 replies \ @DarthCoin 6 Mar

You are a brave man. Few have balls like you have... Please do it! May The Bitcoin Be With You!

1 sat \ 0 replies \ @ambosstech 6 Mar

We do this for contractors and have our accountant, Satoshi Pacioli, use an exchange account to send to the contractors.

We started with Bitwage but have since decided to bring this function in-house.

0 sats \ 0 replies \ @JesseJames 26 Jun

Good idea, one unsolicited advise, don't force it, educate them , show the way, what they do with their direct deposits is their business.... Let them be, but help and guide.

0 sats \ 0 replies \ @joyepzion 7 Mar

I would love to work in a company they pay in Bitcoin

0 sats \ 0 replies \ @SatoshisVoice 6 Mar

Your approach of issuing paystubs reflecting the BTC payments and accurately reporting taxable wages to the IRS is a responsible way to handle the situation. However, manually entering the BTC payments into QuickBooks may introduce some extra steps and potential for error.

Regarding the paper trail with the IRS, you’re correct that the focus would primarily be on the taxable wages earned, rather than the specific form of payment. However, it’s essential to ensure that your employees are aware of their tax obligations related to receiving BTC payments and that they accurately report this income on their tax returns.

As for tips and resources, consulting with a tax advisor or accountant familiar with cryptocurrency payments and payroll processes could provide valuable insights tailored to your specific situation. Additionally, staying informed about any regulatory developments related to cryptocurrency payments in the US can help ensure compliance with relevant laws and regulations.

Overall, while paying employees in BTC can offer benefits, it’s crucial to approach it thoughtfully and ensure compliance with tax and regulatory requirements.

Best of luck with your endeavor! 🚀

0 sats \ 0 replies \ @AGORA 6 Mar

This could be such a great conversation to explore together with other merchants and business owners in the ~AGORA

0 sats \ 0 replies \ @Lanter 6 Mar

We appreciate you contacting us and sharing this thought. It's a neat idea to pay staff using cryptocurrencies like Bitcoin, and it's excellent that you're thinking about the practicalities. Cryptocurrency transactions may have tax ramifications, therefore it's imperative to speak with a tax expert or legal counsel to ensure compliance with local laws.

It sounds like a well-thought-out workaround that you came up with to issue a paystub that shows the USD value and manually enter it into QuickBooks. But as you pointed out, maintaining a paper trail for taxable wages and making sure IRS filing is accurate are both vital.

Consulting with experts in cryptocurrency payroll or businesses that have effectively executed comparable procedures could prove advantageous. They might offer insightful advice and helpful tools for navigating this unusual payment option in the compliance economy.

0 sats \ 0 replies \ @satoshiplanet 6 Mar

Great news https://media.tenor.com/wIZk2WP-IGAAAAAM/simpsons-zzzzzzzap.gif

0 sats \ 0 replies \ @watchmancbiz 6 Mar

Honestly, not sure about the rules, but it sounds like a great idea. IMO, I would prefer Silver though ;-)

0 sats \ 0 replies \ @Kmt 6 Mar freebie

It will happen sooner or later

0 sats \ 1 reply \ @DeltaClimbs 6 Mar

Here's a tip, what you want to do is actually retarded LARPing.

Scroll through tweets here to understand what actually matters and the proper way to do it, which you can't actually do, since I stopped working on the company over a year and a half ago when "bitcoiner" VCs decided to be too retarded to think through how something works. https://twitter.com/runCaliber

100 sats \ 0 replies \ @bzzzt OP 6 Mar freebie

alrighty, well i dont have twitter but thanks for the comment.

0 sats \ 0 replies \ @jetecs6 6 Mar

Its not a bad thing to pay your employees with btc but Before proceeding with paying your employees in Bitcoin (BTC), it's essential to consider various factors, including legal and tax implications. While the concept may seem appealing, there are potential risks and challenges associated with it.

0 sats \ 0 replies \ @SaToSHiWoMaN 6 Mar outlawed

stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.

0 sats \ 0 replies \ @wopwopwopwop 6 Mar freebie

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