Tax Implications, The Main Worry In BTC Salary Payments – Exodus CEOJune 14, 2022
The intense selloffs in the crypto bear market continue as it has been since the start of the week. However, the crypto wallet provider (Exodus) hasn’t stopped paying its staff salaries in BTC. Monday’s market crash caused the wider crypto market cap to drop below $1 trillion.
Paying Staff Salary In BTC
Exodus CEO JP Richardson has stated that the company has been paying his staff salary in BTC since launching seven years ago. According to Richardson, all 300 of the company’s staff continue to receive their salaries in BTC. He added that they even pay staff’s salary in BTC during the bear markets.
He said the company converts staff salaries to the BTC equivalent of their USD fiat salaries. Richardson explained, “suppose a staff’s salary is $15K per month, and one BTC is valued at $30K. Then, the staff will receive 0.5 BTC as his salary.”
The Exodus CEO further added that the company adds a small amount to each of the staff’s BTC salary payments to cater to market volatility. Richardson noted that paying staff salaries in BTC has helped the company employ committed hands.
“Those working with us are those with a true passion for DeFi. However, we also allow any employee to receive part of their salary in BTC and part in fiat,” Richardson added. The Exodus CEO also said their staff could do whatever they wanted with their BTC payments. They can convert to fiat, stablecoins, or even trade the crypto market.
Tax Worries Are Our Employees’ Main Concern – Richardson
Richardson further said that they also encounter some challenges with paying salaries in BTC. He said, “our employees, especially the new ones, usually ask us the tax effect of receiving their salaries in BTC. Hence, we have a tax advisor for each employee. This advisor educates our staff on ways they can pay their taxes at the right time. He also advises them on ways to manage their BTC payments.”
The Exodus CEO stated that more than 66% of their workforce is outside the US. Hence, they ensure that each us employee is familiar with crypto laws for their states and countries. They must confirm that they can receive BTC legally where they reside.
There are some US states where BTC transactions are illegal. According to Richardson, Exodus is paying its staff in BTC as its contribution toward making people experience how crypto will revolutionize the financial world.
There are two benefits for employees who receive their salaries in BTC. It ensures salary transparency between the staff and the company. Also, it helps employees to start an investment portfolio in crypto. Richardson claims that each staff member knows the exact salary of other staff members, including the company’s CEO.
Is a layoff at Exodus possible soon?
The media asked Richardson whether the recent selloffs in the crypto market will cause Exodus to lay off some of its staff. Richardson declined to make any comment about imminent layoffs. He only said, “we continue to build Web3 innovations that provide value for the market.” However, he noted that the recent crypto volatility has negatively affected all crypto companies, including Exodus.