Are Bitcoins the Answer to Virtual Payroll?

Just like everything else today, currency has been translated into an electronic format called Bitcoins. Virtual payments happen as an electronic exchange over a network and boast no bank authority or regional boundaries. With a Bitcoin wallet, a user can make or receive payments similar to the way we send and receive emails.  Of course there is a lot of encryption and privacy protection incorporated into all of the transactions. There are at least three companies that now call themselves Bitcoin Payroll Service Providers. Is this a viable alternative to checks, direct deposits and paycards? No.
 
According to most US laws, employers must pay employees in cash or a cash-equivalent. A check is a cash-equivalent, but Bitcoins are not. Usually states specifically list types of wage payments allowed, like cash, checks, direct deposits, or paycards. Bitcoins are not listed as an accepted type of wage payment by any state. Also, the federal government does not accept payment in Bitcoins, so all taxes and child support payments must be paid in US dollars.
 
Accounts Payable and Accounts Receivable departments are more likely to deal in Bitcoins than Payroll departments today. If an employee does choose to be paid in Bitcoins, you must first pay the employee with cash or a cash-equivalent. Then the employee can go back purchase Bitcoins from the employer with their original paycheck. 

At the end of the day Bitcoins are worth money, and just like stocks, their value fluctuates up and down - but as of today, they are not a cash-equivalent.

The world of payroll is moving fast - let Optimum solutions help you stay up to date! Watch a free software demo now, or contact us today to learn more.

Get a Free Demo

Fill out the form below & we'll email you a video product demo!

Which solution are you interested in?
Optimum Solutions will not sell, rent, or lease your personal information.

Chief Financial Officer Marion Hall, Gaines Motor Lines

Support is always there when I need them and to date we have had only minor ‘user’ problems.