Bitwage, a San Francisco-based cryptocurrency payroll service provider announced its partnership with Simply Efficient HR, a Texas-based Payroll & HR firm on January 16. Bitwage revealed that their collaboration with the latter would enable companies in 50 U.S. states to fund their W2 employee Payrolls & Payroll Taxes with Bitcoin and Ethereum.
The Project is Aimed at Closing the Bitcoin Cycle Loop
As per the report, the aim of allowing firms to pay their workers with cryptocurrencies is to close the loop in Bitcoin’s economic cycle. Here, the San Francisco-based company states that a person usually has to buy Bitcoins which is used to trade for goods and services. The recipient of the digital asset, on the other hand, will pay its employees with the currency.
Consequently, this project will enable companies to fund their payroll with Bitcoin and Ethereum. In this case, they will be invoiced in USD before their payroll is funded with these digital assets. These companies can also pay their taxes using digital assets or pay their employee’s benefits such as health insurance and HR compliance services.
Steps to Fund a Company’s Payroll With Bitcoins
The payroll service provider has outlined a list of steps a company has to follow to achieve this feat. First, they need to create an account on Bitwage and then contact the company’s support for the Payroll & HR services. The next step is to add the account received from Simply Efficient HR’s team, on the newly created Bitwage account.
Asides from that, more news regarding the project reveals that its beta phase began in November. Paxful, a cryptocurrency exchange was its first client, and so far the company has made positive comments. For instance, Hayel Abbassi, Paxful Controller said: “Bitwage bridges the gap between bitcoin and the traditional finance system.”
Achieving the Company’s Goal of Closing the Financial Loop
Jonathan Chester, CEO of Bitwage hopes that the new development will help the company to achieve its goal of closing the financial loop in the crypto industry. He also is expectant that this will enable Bitcoin to be a part of people’s daily lives.
On November 25, BTCNN reported that Ohio is the first state in the U.S. to allow companies to pay their taxes using Bitcoin. It was also said that BitPay’s payment platform is used to enable these transactions. A report from January 7 also reveals that Overstocks, a retail company based in the region is now the first to have registered with the state. The company intends to pay part of its taxes in Bitcoin from February this year.