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Monday, February 14, 2022

Sam Slade, Business Contributor

In todays tight labor market, Bitcoin could give you an edge. But before you forego paychecks, here are 3 things to consider.

Comply with federal and state law: Some states require wages to be paid in US currency. However, others allow an employee to agree in writing to receive part or all of their wages in another form. No matter where you operate, youll want to make any program optional and have employees authorize their participation in writing.Decide how youll pay: You can either pay employees in their normal currency, with a portion of the wages then converted to the digital asset of their choice, or you could pay in the cryptocurrency itself. With the latter, keep in mind youll need to withhold and report payroll taxes, which could be a little more challenging administratively since youll need to determine the fair market value of the cryptocurrency.Disclose the risks: Bitcoin and other cryptocurrencies can be volatile and drop steeply in value. (In December, Bitcoin fell as much as 21% in a matter of hours.) Plus, theres the potential capital gains taxes theyll need to understand since cryptocurrencies are currently considered property by the IRS. Be sure to make employees aware of the risks and agree to them in their written acknowledgment.

These are just a few of the topics youll need to think about when considering digital currencies as a payment method. With many potential legal issues, its a good idea to consult your attorney first before making any decision to pay wages or bonuses in cryptocurrency.

Read more from the original source:
Want to Lure Young Workers With Cryptocurrency? 3 Things to Know - GoLocalProv