BitPay’s Payroll API supports multiple currencies and can send payments to any Bitcoin wallet. Employees who opt to take a portion of their after-tax earnings in Bitcoin will have it deposited into their Bitcoin wallet with each pay cycle. BitPay’s API makes the exchange rate available to the employer, so that the employee can properly account for the cost basis of the bitcoin that they earned.
To enroll in the service, BitPay users need to first connect a bank account of their choice to the service, then contact their employer or payroll provider to list this account as a secondary recipient account for wage payments. Users then authorise BitPay to initiate debit entries from their bank accounts so that it may convert a certain specified amount of their paycheck into Bitcoin.
On payday, funds are sent via direct deposit from the employer to the employee’s designated account for BitPay. From there, a wire transfer is sent to BitPay’s partner exchange, Centralway Ventures-backed Buttercoin.
These funds stay in USD on the exchange until the next day, at which time the funds are converted to Bitcoin and distributed. BitPay will allow employee and employer users to receive capital gains reports through the firms partnership with Gocheto Financials, a Bitcoin advisory firm.
Additionally, Chester states that BitPay may seek to cap the fees for users of its individual payroll service, although any plans for the monetisation of the offering are in their early stages.
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