Bitcoin for salary

[GreatArkansas]

I don't have lot knowledge about different things about legalities or some government things.

I am become curious about paying an employee using Bitcoin direct to it's Bitcoin wallet.
Like these days, some of our salary are paid in different method, some are being deposit on some bank accounts, some are cheque, some are cash directly.

I want to ask if we will make official method for paying our employees in Bitcoin directly to their Bitcoin wallet.
Is this method is not foul on the government? Or it is legal?
Especially on the department of government that is about the labor or employment.

[Wexnident]

I doubt there's an issue if they ever want to? Though it is imo, an inefficient way since most companies would convert fiat > BTC then given to employees as salary, then employees would simply just convert it to Fiat again. Although this does bring transparency towards the system of a company, none would probably even want to use it still. The main problem is about adoption of BTC right now, though if we do ignore that and think of BTC as the norms of currency, then it still wouldn't work imo. I'd rather think that governments would create their own blockchain to show transparency of payments and the like, and BTC would then mostly be used as a form of currency for specific scenarios mostly, (or whatever the owner wants to anw).

As for the issue of legality, if adoption comes, then it being legal is a matter of course, though I doubt there's even a law banning salaries to be paid in Bitcoin even now, probably because not much has been shown about it being used as salary?

[Sanugarid]

Hmm quite interesting for us, but how about those employees who does not have that much knowledge about bitcoin, they might just accept it til they know it is volatile, very volatile. But I honestly think that it is possible with these 3 factors, 1.) if the company wants to leap a very risky method of paying their employees, 2.) If the employees wants it too and 3.) If the state of the country does not prohibit the use of bitcoin in any way, even in paying wages. I don't know much about the legalities of labor wages, if it can be done using fiat powered coin just like the cheque, but I guess it is too off especially the volatility rate of bitcoin is our main concern.

[20kevin20]

It totally depends on the current laws of each state/country. Not sure how reliable this website is (the only one I can properly access without JS), but here's what Employment Law Handbook says about the New York state:

Manner of Wage Payments

An employer may pay an employee by:
- cash
- check redeemable for full face value without deduction or fee
- direct deposit, only with the employee’s consent

As long as the laws allow you to pay the salary in the equivalent of other currencies, products or digital assets, it should be legal and fine. It's on a case-by-case basis.

[harizen]

Like these days, some of our salary are paid in different method, some are being deposit on some bank accounts, some are cheque, some are cash directly.

Average employees want instant access to their money the moment they received it as salary so that they can go directly to any payment processors or ATM to encash it. If ever it will be as Bitcoin payment then they want to use it right away, there's no difference at all to the way they received it on usual fiat.

And on the country wherein there's no local exchanger that can process the withdrawal into cash instantly, it will be a problem.

Is this method is not foul on the government? Or it is legal?

It will be legal as long as the company will declare it to the Labor Department or any Government Bureaus that covered it.

It's not foul since, after all, companies will still pay the associated tax.

The bottom line, the whole idea is good but the world is not yet ready. Lots of factors to be considered. It will be several years in the making.

[AjithBtc]

Already there were more number of industries that had paid their employees in terms of bitcoin. Governments won't agree to pay employees in the form of bitcoin. Private firms paying in terms of cryptocurrency is upto the management, and government doesn't have anything to do with it.

In an article read about Indonesian plantation workers paid with bitcoin, as it helps with easy cross border transaction with ease than through banking.

[BrewMaster]

it is always best to ask these question from a lawyer who is familiar with the law and specifically the law regarding cryptocurrencies. but in the past i have seen some companies paid part of the salary in bitcoin and of course there is always freelancers who are getting paid in bitcoin although that is not exactly an official salary.

[bitcoinisbest]

For countries where bitcoin is legal then organization can play to their employees in the bitcoin. But problem arises if not all are that computer literate or does not know how to use it and are not ready to accept it. Some may agree and others may disagree about this as a payment. If it’s a cross border somebody is consultant or even full-time doing transaction through swift etc then they such transaction will be beneficial if done through bitcoin as transfer costs would be cheap and quick too.

[sheenshane]

I want to ask if we will make official method for paying our employees in Bitcoin directly to their Bitcoin wallet.
Is this method is not foul on the government? Or it is legal?
Especially on the department of government that is about the labor or employment.

I have doubt that this isn't legal in any country since Bitcoin is unregulated yet. Because most states have laws that regulate when you have to make certain types of payment. Upon choosing as a payment method to your employees, don't violate the laws. As a Department of Labor and Employment (DOLE) law, this is a mandatory law for labor and employment to pay taxes. Unless, if your company will pay taxes too but I don't think if they will accept Bitcoin.

The Labor Department will always ask documents, like detail informations, the date and the amount, and pay period for all employees. And also the record gross wages, deductions, and net pay. All of these are needed, for now, more appropriate if you will pay through cash, check, pay cards, direct deposit or even cash through digital mobile wallet. They are regulated currency that supported by bank, I don't think about cryptocurrency.

[Xembin]

Bitcoin is a decentralized not a centralized. Some government would not allow Bitcoin as a payment because they are not the one controlling the coins.
Bitcoin payment can only work in some private organization, Base on the agreement between the employer and employees in the organization.

[Xembin]

I am become curious about paying an employee using Bitcoin direct to it's Bitcoin wallet.
Like these days, some of our salary are paid in different method, some are being deposit on some bank accounts, some are cheque, some are cash directly.

I think it is base on the negotiation between employees and employer for the system to work for Bitcoin payment.
Many organizations pay their worker with fiat becaus is very common with the individual to use.

[tranthidung]

In the bull market in 2017, the GMO company made that announcement A company in Japan wants to start paying employees in Bitcoin. I remembered how the people reacted to that news.

As other said, it relates to different things:
- Local laws: Legality of bitcoin in local nation, area, etc.
- How the company make deal with their employees for payment in bitcoin: all in bitcoin or half in bitcoin and half in fiat.
- Cutoff day to make payment and from which exchange(s), the btc price rate will be taken from.

I am sure it is reasonable when crypto companies pay their employees in crypto. 

[dothebeats]

You will have to consult local laws and regulations regarding salaries and wages since it is subject to taxation and other related matters. If I were an employer and my employee wants to get paid in bitcoin, I would grant his/her request and pay him/her accordingly, and just keep a ledger of transactions between him/her and I in order to use for legal purposes since bitcoin and crypto is starting to get recognized as 'legal tender' on some countries. It might even work as a prime example of how it can be used in the real world, and regulations and existing laws might soon conform to it if the demand is there and the use is, well, really practical for the masses.

[Haunebu]

I strongly advise against it unless the employee himself/herself requests for it. Why? Because of the volatility factor which needs to be taken into consideration here. Salaried individuals usually depend on consistent salaries every month.

However, BTC volatility would practically make this difficult since the employee may receive higher or lower salaries due to the fluctuations over time.

Instead, the better option here would be pay using stablecoins like Tether, TrueUSD, Gemini USD etc whose volatility is drastically low leading to consistent payments.

[bitbunnny]

Already there were more number of industries that had paid their employees in terms of bitcoin. Governments won't agree to pay employees in the form of bitcoin. Private firms paying in terms of cryptocurrency is upto the management, and government doesn't have anything to do with it.

In an article read about Indonesian plantation workers paid with bitcoin, as it helps with easy cross border transaction with ease than through banking.

It's up to every company, not to government how will they pay their workers, I agree to that. However, they have to stick some laws about it so that workers are still protected.
However, I"m not sure that I would like to get my paycheck in Bitcoin. Because of volatility and lack of regulation I don't find that as a very good idea. I prefere my paycheck in fiat and Bitcoin only as additional income.

[molsewid]

Depends on the employee, some of them want it. Some of them will disagree. Not all employees know bitcoin and most of them prefer cash.

Cash is ready to use in daily needs compare to bitcoin you need to convert it to fiat then transfer to a bank account.

If this is not illegal you might consider taking their opinion before changing your salary method to your employees.

The hassle and fees problem in converting bitcoin into cash might put them to quit their job.

[Rengga Jati]

Nowadays, salary payment with crypto (especially BTC) has been implemented in some countries. They are such as Japan, The Netherlands, New Zealand, the UK, and maybe others. I think that it is also an interesting thing that we can accept a salary with BTC if possible. But of course, it will have its own strength and weakness.

Related to some questions:

I want to ask if we will make official method for paying our employees in Bitcoin directly to their Bitcoin wallet.
Is this method is not foul on the government? Or it is legal?
Especially on the department of government that is about the labor or employment.

The legality of cryptocurrency in each country may be different. It will depend on what country it is. If there is a law about cryptocurrency, we should also know, in what case the crypto is legal. The probabilities are there.
1. Crypto is legal for digital asset
2. Crypto is legal for payment/transaction
If both are legal in a country, it may be available for salary payment with BTC.
As in my country itself, crypto is only legal for the digital asset so far. So, we can't use it for any payment methods, including salary.

But sometimes, It may be constrained by the following terms:
1. Law
Related to the law in force in the country, it needs to understand the legal protection, never against the government or you will face many obstacles or rule of law. It is better to consult with the legal consultants who understand this and are based on applicable laws.
2. Tax
Sometimes, the salary will also require some taxes. And here, if we can use BTC as payment, we must also think of the mechanism and rules of law of the taxes. Is there any, the mechanism, and also the counting. It may be also important to go to the consultant
3. Agreement
It relates to the owner and also employers whether they agree to use such a payment method or not. Or it is only an alternative of the payment method, whether you can receive payment on cash, cheque, or event transfer on a bank account or use BTC.

And maybe of course some other considerations and notes..

Source:
https://nomoretax.eu/the-legality-of-cryptocurrency-salaries/

[suzanne5223]

The method of paying employees in cryptocurrency can be unpleasant on the government but it a vice versa circumstance because the government stance anout crypto payment is what will differentiate if receive of wages to unpleasant or not. Besides, we have some countries where crypto users pay tax according to their income and salary.
In other for you to receive crypto as wage you'll need visit crypto legal adviser for help in other to avoid future tax complication.

[imstillthebest]

Depends on the employee, some of them want it. Some of them will disagree. Not all employees know bitcoin and most of them prefer cash.

Cash is ready to use in daily needs compare to bitcoin you need to convert it to fiat then transfer to a bank account.

If this is not illegal you might consider taking their opinion before changing your salary method to your employees.

The hassle and fees problem in converting bitcoin into cash might put them to quit their job.

he isnt asking the opinion of the employee but he wants to know if theres an extra requirement if he wants to pay using a btc if he owns a company  or a business . btc works like a cash now and it does not need conversion before you use it . what can an employee do if the company will pay in btc ? they will accept it or they will quit but if the onwer is not strict maybe he can make an exception and pay others with thier prefered option .

[hotwheels798]

I don't have lot knowledge about different things about legalities or some government things.

I am become curious about paying an employee using Bitcoin direct to it's Bitcoin wallet.
Like these days, some of our salary are paid in different method, some are being deposit on some bank accounts, some are cheque, some are cash directly.

I want to ask if we will make official method for paying our employees in Bitcoin directly to their Bitcoin wallet.
Is this method is not foul on the government? Or it is legal?
Especially on the department of government that is about the labor or employment.

Well this will be a good implementation . But some legal steps should be implemented . As we all know bitcoin transaction is completely transparent because it is based on a blockchain platform. But the worrying thing is that it cannot be traced.  So each wallet should be verified with their identity in an organisation. So that the confusion can be avoided . And it will be grate if they payment will be paid in ripple ( XRP ) for better surety of transaction because of tag number.