Switching accounts and transactions to digital currency does not exempt one from taxes. Despite this, many Canadian employers have their workers paid in Bitcoin.
Generally, these are high-tech companies with employees having high interest in innovations, and their Bitcoin wages are, basically, barter transactions. The product (in this case – the digital currency) is evaluated in Canadian dollars, and employees still have to declare their labor income in CAD equivalent.
According to Shrad Rao, the CEO of Wagepoint start-up, last November his company came up with a service for employers who want to pay salaries in bitcoins. Initially, Wagepoint expected some one or two clients to join the service, but these expectations were surpassed. Though at first it was just a pilot project, the service has been joined by ten other companies in less than a year, and there are still dozens of other enterprises requesting access to it.
The service has not yet been launched in the United States, but Wagepoint gets in five requests per month in average from American companies. Mr. Rao considered this a good opportunity to set up Wagepoint office in New York.
Wagepoint’s CEO says it does not really matter what you do with your money – spend them on a luxury boat or a certain amount of bitcoins. What you do with your income is your own business. Currently, Rao does not expect Bitcoin to be adopted universally as a means of wage payment until the digital currency becomes widely distrubuted and fully regulated. BTC might seem the best payment alternative for employees of technology start-ups, but it’s still hard to imagine, for instance, postal workers to be paid in Bitcoin.