Paying employee wages in Bitcoin - Legal and tax implications

[tullybear94]

If an employer was to pay an employee a percentage of their net salary in Bitcoin (pre-tax) would they save on paying tax because they are using a 'virtual currency' which isn't regulated.. or would they have to pay tax in respective to the value of Bitcoin that is paid?

[1714856991]

1714856991

[1714856991]

1714856991

[Seccour]

I think they have to pay tax in respective to the value of Bitcoin that is paid. The value of Bitcoin when he pay an employee.

[TBWorker]

Almost positive company would have to withhold tax for the value of btc

[tullybear94]

Almost positive company would have to withhold tax for the value of btc

So not declare it officially?

[mgio]

Almost positive company would have to withhold tax for the value of btc

So not declare it officially?

There would be no tax benefit.

It doesn't matter if you are paid in dollars, bitcoins, or bushels of rice, you still have to pay taxes.

The income tax would be calculated based on the market value of the goods or services being given as income. Everything has a value. If you don't know, estimate, and hope the IRS agrees with your estimate.

Note that this includes services too. If you fix my car and in return I paint your house for you, technically you need to pay income tax on the value of a house painting.