BitPay’s New Bitcoin Payroll System
Bitpay announced that they released a new payroll system using bitcoins. This system allows employers to set scheduled payroll using bitcoins. This is an extremely fast process and is probably the fastest way to get paid. Instead of waiting for a check to come in the mail or the direct deposit to hit your bank account, you can get paid almost instantly with bitpay’s new bitcoin api.
How does it work?
1. Opt-in to a net payroll deduction
2. Choose a fixed dollar amount for each pay period
3. Provide a bitcoin receiving address
1. Aggregate the employee requests
2. Transmit the batch to BitPay
3. Fund the batch on or before the effective date
1. Validate the batch
2. Send Payments upon funding
3. Provide status notifications
The bitcoin portion of the net pay is treated as a net payroll deduction, and is handled post-withholding and post-garnishment, if any. Most people will question about how the taxes work when getting paid in bitcoin. This is what Bitpay’s CFO has to say,
“Since all payroll and withholding taxes are taken out first from the employee’s gross income, bitcoins can be sent from the net pay tax-free, and the employer’s gross income reporting to the IRS remains unchanged,” said Bryan Kohn, BitPay’s CFO.”
For those that do not know, BitPay is still the most popular bitcoin payment processor in the world, removing price volatility risk for curious-but-nervous merchants by converting their bitcoin income instantly into local currencies. Adding new merchants at a rate of 1,000 per week, the company also announced it now had over 20,000 bitcoin accepting businesses as clients. Will bitcoins and startups that revolve around bitcoin be the future?
Check out bitpay’s api here: https://bitpay.com/bitcoin-payroll-api
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