PEY: salary settlement with bitcoin in Germany

The German payment processor PEY offers a service for payroll accounting with Bitcoin. As the magazine t3n publicly announced, employees can partly receive their salary in bitcoins. Pey takes over the processing of the withdrawals.

The possibilities to use bitcoins in real life are growing steadily. While the number of acceptance points and service providers with which Bitcoin can be paid for is developing positively, digital currencies are rather a foreign word in the classic corporate environment.

So it would be quite conceivable to pay employees in Bitcoin. Needless to say, as a hybrid model, employees can continue to choose between Fiat currencies and digital currencies. However, in reality, salary payments with digital currencies do not occur.

PEY takes over payment processing

German magazine t3n would like to take the step towards employee compensation via Bitcoins. Editors can pay off all or part of their salary in bitcoins. The corresponding concept is also provided by a company from Germany:


Salary payment via PEY: tax free bonus?

PEY uses the payroll API from the payment processor Bitpay. In Germany, bitcoin wages should be made possible. Challenges arise in the German area, in particular through the legal and tax treatment of bitcoins.

A bit of the bitcoins (maximum 44 euros) can be settled as a tax-free bonus, because bitcoins are not considered as a currency according to German law.

Regulatory consequences unknown

The question remains as to how governments react to the bitcoin disbursements. Although the Bitcoin is a currency for many users, it is not legally considered as such. The state would thus avoid tax revenues (for example, through billing as a premium). Difficulties also arise in bookkeeping and payroll, since bitcoins can not be converted into euros at a fixed price. PEY is facing these challenges and would like to publish a general solution for bitcoin payment in the near future.

Comment by the author (Max):

"Paying wages over Bitcoin is absolutely no future music, but long overdue and could already be ready to go. Uncertainties about the legal handling and the restraint of the governments slowed the development very strongly, because companies could not rely on safe handling so far.It is time for the authorities to take a position on digital currencies to create a framework for companies to expand this (technically longest possible) technology. "

English original version PEY Offers Bitcoin Payroll to T3N Using Bitpay's Solution via newsBTC