BitPay, known as the world’s largest digital payments processor, has announced the release of their bitcoin payment API (in beta for employers in Georgia and S. Carolina, and for licensed payroll providers in the United States), which allows employers to pay a portion of their W-2 employees’ net pay in bitcoin.
BitPay says the API is designed for both employers and payroll providers, and employees seeking to have a part of their pay made in bitcoin can just ask their employer, provided the employer uses the payroll API service.
“For the longest time the hard question was ‘How do I buy bitcoin?'” Tony Gallippi, CEO of BitPay, says. “Now the answer is easy: ‘Ask your employer.'”
BitPay originally designed the API as an internal solution to paying their employees in bitcoin (100 percent of them are participating in some form — 4 of whom receive 100 percent of their net pay in bitcoin, including Gallippi himself), and it has since morphed into a public product.
On the question of taxation, BitPay CFO Bryan Krohn says “Since all payroll and withholding taxes are taken out first from the employee’s gross income, bitcoins can be sent from the net pay tax-free, and the employer’s gross income reporting to the IRS remains unchanged.”
This could potentially revolutionize how individuals acquire bitcoins, provided a good number of employers sign up. (Press Release)