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Millions of newly laid-off professionals have been forced to take on jobs online— in the form of freelancing or remote work— on account of the COVID-29 pandemic. At the same time, it's good to see that there are employment alternatives out there that keep people from falling into destitution. In this article, we'll not only talk about Crypto Payments for freelancers but also everything else that you need to know when paying your freelancers and remote workers.
In fact, according to recent statistics collected by the UpWork/ Freelancers Union , nearly 57.3 million people prefer to freelance in the United States alone. More impressively, a study by Payoneer states that nearly 7% of freelancers around the globe hale from the African continent.
However, one thing that seems to concern many people is the mode of payment that applies to freelance and remote employment. Fortunately, there are a few cryptocurrency payment gateways options out there— including Bitcoin. Before we go on to explain how to pay your remote workers and freelancers with Bitcoin, let's shed some light on when you should do this, the benefits of paying Bitcoin and other cryptocurrency payment gateway options available.
StashWave’s Bitcoin Payment Solution
Companies looking into implementing Bitcoin payments for their remote workers and freelancers may require the assistance of firms that specialize in this kind of bookkeeping. In today's day and age, in which the use of digital currencies for payments is expanding quickly across the globe, StashWave is a reputable platform that offers crypto payments for freelancers and remote workers.
StashWave enables global businesses to use cryptocurrency to pay their suppliers more quickly and affordably. Employers who seek to provide benefits related to digital assets to their employees and contractors make up a large portion of their clients. At the same time, it gives those who choose to be paid in currency the choice to get some or all of their pay in cryptocurrency.
When Should You Pay In Bitcoin
It is easy to use cryptocurrency as a form of payment. Actually, it has been for a while, but increasing attention necessitates a more thorough examination. Consider a cryptocurrencies payment gateway if your company falls under one of the following circumstances:
There are no additional payment options.
The cost of invoices (or an invoicing programme) is excessive.
Your payroll system is either slow or has trouble processing payments from abroad.
Excessive reliance on a single payment method, such as PayPal.
Sounds fascinating, no? However, even if you're interested in doing something, your particular firm may not benefit from it (or the industry). There are a few scenarios that would justify the use of Bitcoin payment more than others.
Consider paying your remote workers and freelancers in Bitcoin if your business meets the following criteria:
Your remote workers include some foreigners. Or they might reside in a place with high taxes, like California, while your business is located in a state with low taxes.
Tech-savvy employees work for you remotely. engineers in software, as an example. They are more likely to be familiar with the crypto space as a result. They may even now be holding some cryptocurrency.
You can manage turbulence. Like other currencies, cryptocurrency values fluctuate. they do it a little more "vigorously," though. at least right now.
Your company has the adaptability to change from one cryptocurrency to another. This is significant because it allows you to move to a cryptocurrency that is more suitable for your sector. This technology is still being developed.
You already have individuals on staff who can manage cryptocurrency for you. To discover this, you'll need to poll employees. If someone knows the technology, it was probably gained through personal testing. They might not wish to divulge that information to the public (people have ridiculed cryptos in the past).
Benefits Of Bitcoin Payments
There are numerous potential benefits of paying your remote workers and freelancers in Bitcoin. Below are some great ways you can benefit from doing so!
Transactions involving cryptocurrencies are completed and settled almost instantaneously. The processing time for identical normal banking transactions could take days or weeks, depending on where your workers, payroll, and central offices are located.
You Have Greater Independence
Bitcoin and other digital currencies are powered by decentralised peer-to-peer networks that are independent of any bank or other middleman. Payments are made without the intervention of financial institutions or governments and are made straight to the recipient. This could result in increased efficiency and less red tape. With these benefits, crypto payments might someday take over as the go-to choice for compensating remote workers who work in different parts of the world.
Getting paid in Bitcoin or comparable currencies may appeal to employees who are already familiar with and knowledgeable about cryptocurrencies as well as individuals with liberal tendencies who seek to limit their reliance on the government or other authorities.
If you pay remote workers or freelancers in computing and similar high-tech industries, having the option to be paid in cryptocurrencies may provide your company with an advantage over rivals in terms of employee recruitment and retention.
Receiving all or a portion of income in cryptocurrency may be more tax-efficient for some employees, depending on how Bitcoin is regulated in your country of operation.
For instance, Bitcoin is taxed like property in the USA. This indicates that any cryptocurrency whose value has increased after purchase is subject to Capital Gains Tax (CGT) upon sale or use. Some higher earners might prefer to receive most or a portion of their earnings in cryptocurrency rather than cash because CGT may be less expensive than that of the higher income tax band.
Bitcoins have the potential for value fluctuations, perhaps more so than cash transfers do in the majority of nations. This implies that employees may receive far higher pay than they would have in cash terms if the value of their Bitcoin increases.
Other Cryptocurrency Payment Options
You might hear a lot of unfamiliar names being thrown around while talking to your freelancers and remote workers about payment options. For instance, you might be curious to know what Ethereum is.
Let's first provide a few explanations. Since they can help people make money, many cryptocurrencies are currently popular. In contrast, you should focus on value and fair cost when conducting business. In light of this, we've listed a few cryptocurrencies that we believe are either suitable for commercial use or that you should stay away from:
Bitcoin (BTC): This has been our primary example throughout the article. StashWave leverages Bitcoin Network in all its services. StashWave offers instant payouts in Bitcoin and faster transactions through the Lightning Network .
Litecoin (LTC): Think of this as the “silver” to Bitcoin’s gold. It has been around for a long time and is considered by many as a safe alternative.
Ethereum (ETH): This is considered a versatile currency with numerous sub-projects. This makes it a good option when paying your freelancers and remote workers.
Ripple (XRP): Is designed for international banking. Currently, it's very cheap as well.
Several sectors also have one or more digital currencies that are specialized to meet their demands. Atlant (real estate), Ambrosus (food & medicine), Stellar (banking), and many others are a few examples. Just type "crypto [Your Industry]" into Google.
We picked these altcoins for their stability, familiarity, and affordability.
How To Create And Send Bitcoin Invoices With StashWave
In certain circumstances and in certain countries, businesses may be able to pay their employees in cryptocurrency (e.g. UK, USA or El Salvador).
Other nations, including China, Egypt, and Qatar, have outlawed cryptocurrencies or have severely restricted their use and trading, making them illegal in those nations. Utilizing Bitcoins as direct payments to your remote employees may still be subject to limitations or outright prohibitions, even in nations where they are largely accepted and incorporated.
States' laws can differ from one another in the USA. Employers may be required to pay a minimum wage in USD in some states; after this point, only US dollars may be used as payment. Additionally, they might need to obtain the employee's written consent if they want to pay some or all of the employee's wage in Bitcoin.
Employers also have the option of working with a third-party service provider who can transform salary payouts into Bitcoin and distribute them to the workforce.
There are certain benefits to using cryptocurrency to pay staff when it is both ethically acceptable and practical logistically. Companies may also decide to pay employees partially in cryptocurrency and partially in fiat (e.g. bonuses in Bitcoin and regular salary in cash).
You should carefully scope and prepare if you're considering paying employees entirely or partially in Bitcoin or some other cryptocurrency. You must make sure that you continue to adhere to regional laws and tax regulations and that your employees can still get their payments.
StashWave is one of the most legitimate third-party Bitcoin payment apps out there. We provide an excellent way for businesses and remote workers to conduct digital transactions. We do this mainly by sharing invoice links with external users. Once the payment is made from your end, the freelancer or remote worker can quickly convert the currency into fiat. It is that easy with StashWave !
Without a doubt, cryptocurrencies have had a tremendous impact on the world of finance, including on many businesses' payrolls. However, the usage of cryptocurrencies is outright forbidden in other nations (such as China).
StashWave is now pleased to announce that we are also addressing the financial barriers. It's now time for companies to easily make cryptocurrency distributions and for freelancers to begin taking cryptocurrency payments. Would you like to experiment with crypto wallet? Consult our specialists.
Frequently Asked Questions (FAQs)
What does paying employees in Bitcoin mean for tax obligations?
The response varies depending on personal tax policies and cryptocurrency laws. e.g. In the UK, tax is owed on all income, including cash, assets, benefits, and anything else with monetary worth. These requirements are met by Bitcoins, thus tax must be computed and paid in accordance with value at the time of payment. The IRS in the USA levies property taxes on Bitcoin.
What is the legality of paying employees in cryptocurrency?
Paying employees with cryptocurrency may be permitted in some nations (like El Salvador), but it is prohibited in others (e.g. China).
Businesses should thoroughly research the local laws in each of their operating nations. Not all nations will let cryptocurrencies be treated as a wage or compensation, even in jurisdictions where they are legal in and of themselves. It could be challenging for an employer to prove complete tax and regulatory compliance due to the decentralized nature of cryptocurrency and the absence of official monitoring.
What payment methods are supported?
Debit cards and bank accounts are accepted as payment methods by StashWave.
To be able to link your bank account to StashWave:
Click on “Payment Method”
Select “Add Method”
Select “Bank Account”
Follow the prompt
To buy Bitcoin using your debit card to StashWave:
Select “Buy Bitcoin”
Select “Debit/Credit Card”
Follow the prompts
How does StashWave source its Bitcoin?
To source Bitcoin, StashWave collaborates with liquidity providers. This applies to the Bitcoin you purchase and sell through the app as well as the Bitcoin that StashWave utilises to provide Lightning or on-chain payments. A spread is often included in the price of the Bitcoin that liquidity providers make available.
How do I send a Bitcoin payment?
On the StashWave app, you can buy Bitcoin with your dollar balance.
Your dollar amount will be automatically deducted when you send a Bitcoin payment in order to send the Bitcoin you requested.
To send money with Bitcoin
Choosing the QR-code icon
Copy or scan a Lightning request or Bitcoin address
How do I receive a Bitcoin payment?
The StashWave software allows you to change Bitcoin payments into dollars.
Your dollar balance will be automatically credited when you receive a Bitcoin payment.
To get paid in Bitcoin
Choose the ₿ icon.
Decide on a sum.
Share the demand
Signup on StashWave today to get started and securely and faster pay your remote workers and freelancers with crypto wallet.