The CEO of cryptocurrency wallet provider Exodus spoke about how company employees pay taxes and why bitcoin salaries are useful.
Exodus continues to pay employees in bitcoin (BTC) despite the ongoing downturn in the cryptocurrency markets, CEO Jay Richardson said. Since its launch in 2015, the company has been paying 100% of salary in BTC. Exodus employs over 300 people.
Even during serious market downturns in the past, the company did not stop paying salaries in the first cryptocurrency. Shortly before payday, the company converts the amount into BTC and adds 1% on top to account for the volatility of the cryptocurrency. This approach has helped hire people who have financial obligations, like loans and mortgages, who intend to convert their salaries back into dollars.
“The most popular question we get from new hires is how their crypto payroll affects taxes. Therefore, we offer everyone a tax consultation with our accountant to educate on how to use bitcoins and make sure that taxes are paid correctly,” says Richardson.
A third of the company’s employees, says the head of Exodus, are in the United States, and the rest are scattered around the world. Therefore, tax rules are not always the same. There is a reminder on the company’s official website that some jurisdictions are more strict than others when it comes to bitcoin payments. Therefore, the company advises to double-check whether it is legal to receive payments in bitcoins at the place of residence.
Paying in bitcoin is part of Exodus’ strategy to enable people to experience the “financial revolution from the get-go.” Such payments allow employees to accumulate Satoshi in their investment accounts and provide transparency. According to Richardson, everyone on the Exodus team knows what other employees are doing with their cryptocurrencies.
