Bitpay has rolled out its payroll API allowing employers to pay workers in the virtual currency. The beta release is now available to both payroll providers and employers.
Bryan Krohn, BitPay’s CFO, explained that the release accounts for W-2 taxes and IRS obligations:
“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.”
BitPay has also announced that it has surpassed 20,000 approved merchants using its service to accept bitcoin and that four BitPay employees, including co-founder and CEO Tony Gallippi, receive 100% of their net pay in bitcoin.