The number of people getting paid or wanting paychecks in crypto is growing. From professional athletes to tech employees are more interested in cryptocurrencies. What should you know about paychecks in crypto before receiving them? Who can help you with reliable crypto payments services in the U.S?
Paycheck in Crypto: Crypto Payments
More and more often, employees are asking their companies or employers to pay them in cryptocurrencies like Bitcoin. A number of politicians and athletes have applied for crypto paychecks in recent years. And payroll processing companies are trying to meet the growing demand.
Cryptocurrency processing companies offer employers a system where employees are paid in U.S. dollars and companies are able to convert those dollars to Bitcoin right off the bat. By working with a reputable merchant processor in the U.S., you can come up with the best deal concerning crypto payments. Make sure the rates are among the cheapest and the services are among the most advanced in the industry.
Important About Crypto Paychecks
Crypto paychecks come with not only benefits for many crypto followers but also risks that one should be cognizant of:
- Legally, crypto wages aren’t recognized in the U.S. at this time, due to the Fair Labor Standards Act, a 1938 statute. However, companies find ways to turn wages into crypto by, e.g., working with a payroll service provider.
- Cryptocurrency volatility is the most obvious concern why many stay away from this type of payments. The drastic fluctuations of crypto money make the landscape risky for everyday workers.
- A misstep could lead to incorrect compensations, thus putting workers into trouble with the Internal Revenue Service (IRS).
- Paying employees in digital coins requires employers to deal with additional accounting. Moreover, part of the income needs to be converted into U.S. dollars to pay federal taxes.
- Employers may classify employees wanting crypto paychecks as contractors so the withholding burden could be placed on workers, who would then be registered as self-employed people.
- Employers may provide compensation in the form of private tokens, and these are traded with greater difficulty than Bitcoin, Ethereum, or Litecoin. Some companies prefer giving some of the compensation in cryptocurrencies and some in dollars, considering this the best way out.
What You Should Know About Paychecks in Crypto
Cryptocurrencies are making their way into mainstream consciousness. More people are interested in receiving their pay in cryptocurrency. It’s important to be aware of both the advantages and risks associated with crypto paychecks. To get the best help with crypto payment processing, turn to a reputable payment processor in the U.S.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high risk merchant account processor in the country that can best help you with crypto payments. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.