Now questions like “Where Can I Spend Bitcoin?”, “How to withdraw Bitcoins to Cash’’ are off the table, the problems solved. Digital coins have become an everyday payment tool. What about salary in bitcoin? Is it possible to legally pay salaries in cryptocurrency? Let’s figure this out.
The Core Benefits of Paying Salaries in Cryptocurrency
Face it: the central banks continue to pump money into the world. We are being flooded by trillions of cheap dollars and euros. In the long run, it will have serious side effects. We have to break the stalemate. This is where the beauty of cryptocurrency comes into play.
There are many advantages of paying salaries in cryptocurrency. The following deserve special attention:
You will have the possibility to make additional profits! The BTC price is changing very rapidly. Use it to your advantage.
When you receive a salary in digital coins, you don’t have to pay any tax fees.
High efficiency of payroll calculation. Once the employer pays for your work, the coins are all yours in just a few minutes.
The Flip Side of the Coin
The prices of digital assets can fall sharply. As a result, the reward for the work you have done can be significantly lower than expected.
In order to pay for various goods and services in the real world, you will have to exchange digital coins for regular currency.
Modern digital money has a relatively low level of liquidity in the traditional market. For this reason, you may have some difficulties when exchanging it for cash at a favorable rate for you.
What Companies Are Willing to Pay Salaries in Cryptocurrency?
The companies that are not afraid of high volatility and troubles with regulators can use virtual currency to get rid of high commission fees for cash fund transfers. What is more, they can simplify a system of performance awards or bonuses for freelancers and remote workers.
Basically, companies that work in the digital industry and receive most of their income in bitcoins (or altcoins) switch to paying for labor with cryptocurrencies, but there are exceptions.
The representatives of GMO Internet announced that they began to pay employees part of the salary in bitcoins several years ago. Employees of the Wirex company can independently choose in what form to receive a salary — in bitcoins, dollars, or switch to a hybrid form (a proportion of the salary — in dollars, the bonus is in digital gold).
Several specialists from the Buffer company started receiving their payments in bitcoins on their own initiative. They spoke frankly of this on their social media and blogs. The developers of golos.io, also receive a salary in cryptocurrency. And there are quite a lot of such companies today.
What Do Regulators Think about Salaries in Cryptocurrency?
The introduction of minimum wage requirements and the format of payment of wages are reflected in the law of each jurisdiction. For example, in the United States, the Fair Labor Standards Act states that remuneration should be paid in traditional fashion (cash or checks). Nevertheless, if desired, consideration could also be given to other forms of payment. Employers can pay part in cash or checks, and give part of it in cryptocurrency. However, some states of the USA have different rules, the average monthly salary of hired employees can be presented only in American currency. In addition. if the United States Securities and Exchange Commission still recognizes digital coins as securities, then employers will have to comply with additional laws, and this at times complicates accounting.
There are countries that are more loyal to the digital industry. Nevertheless, everything is not that simple with payments in crypto. For example, you can not pay the full amount of your salary in digital coins in Estonia and Lithuania. Only a part of the funds — above the statutory minima — can be paid in an alternative form. But you can give bonuses of any size in crypto in these countries. They also have a special approach to the taxation of altcoins. In Lithuania, money received in bitcoins (or other coins) is considered to be the workers’ income. So it is taxed in the same way as a regular salary. When it comes to Estonia, there are no taxes on income, but there are social taxes and a tax on the distribution of profits, which includes cryptocurrency.
The Labour Code of the Russian Federation contains not one word about cryptocurrencies. But here comes a but. There is a clause that all conditions, including the types of funds, assets, and the form of payments, must be spelled out in the contract. Plus crypto hasn’t received money status in Russia yet. So it’s impossible to introduce regulations for payment in magic internet money.
Recently, certain allegations have come to light about the attitude to crypto. Russia proposes new rules and penalties for cryptocurrency owners. It is preparing the draft law with amendments to the Tax Code for its second reading. If the bill passes, the citizens risk criminal charges for the undisclosed information about crypto transactions. That could explain why salary in BTC sounds like a pipe dream in Russia (at least for now).
While bitcoin is most commonly associated with an investment tool and a means of payment for illegal stuff, it is gradually becoming a convenient way to conduct cross-border payments. Thousands of users receive (or wish to receive) salaries in BTC or other types of digital money. Among the people whose work is already paid in virtual currencies are employees of companies with a world-class reputation, such as Google, Philips, and Facebook.
Thus, we may conclude that despite the existing disadvantages of salaries in bitcoins, a huge number of people agree to receive electronic money for their work. The thing is that interest in the global digital coins market segment is growing steadily. Of course, the BTC revolution is not going to happen overnight. But it’s expected to change our lives forever very soon.