Bitwage revealed this week that its services will now enable companies in the United States to use cryptocurrency to pay their W2 employees and related payroll tax obligations. The service is the result of a partnership between Bitwage and Texas-based payroll and human resources firm Simply Efficient HR, according to a Coinstituency article posted on the Bitwage blog.
The service has been in Beta since last November, and was tested by peer-to-peer exchange Paxful. That company’s Controller, Hayel Abbassi, explained the firm’s crypto and payroll needs and how the new service has helped meet those challenges:
“As a company that earns 100% of revenue in bitcoin, we are always looking for service providers who will accept digital currency. Paxful has a significantly sized team in the states and we need to pay them as employees on payroll, not as contractors. Bitwage has recently formed a partnership with a traditional payroll company who integrates into their platform to provide these services. Paxful simply sends bitcoin to an address, and our employees receive net checks with the proper federal and state taxes withheld. “
Bitwage will now provide companies in all 50 U.S. states and Puerto Rico the ability to use crypto to fund payroll, health insurances, and HR compliance services. In addition, firms outside the U.S. can use crypto to pay vendors around the globe.
Bitwage CEO Jonathan Chester said that the service will help his company advance toward its original goals:
“As the leader in cryptocurrency payroll solutions, we are excited to continue to push the adoption of real use-cases within the industry. Together with Simplexity, we hope to close the financial loop within the cryptocurrency industry and continue to make Bitcoin and other cryptocurrencies a part of everyday life.”