July 18, 2017
Rise People making strides with innovative payment currency, bitcoin
VANCOUVER -- Rise People, a new digital HR and group health insurance platform, announced today that its clients can now pay their employees in Bitcoin and other digital currencies, an inevitable trend among savvy workforces.
"Digital currencies are changing the way people view and interact with currency and we're excited to be helping our clients lead that change by enabling them to pay their employees in this way," said Faiz Abdulla, Rise's founder and CEO.
Unlike fiat currencies such as the Canadian Dollar, digital currencies, known as cryptocurrencies, are managed by computer algorithms, not by any government or central bank. While there are several cryptocurrencies available, Bitcoin is by far the most popular.
"Cryptocurrencies are the transaction medium of the future," says Roy Breidi, a Rise client and co-founder at Montreal-based Shakepay, which offers a VISA debit card that enables cardholders to load and spend Bitcoin. "We offer our staff the option to take a percentage of their salary in the cryptocurrency of their choice, be it Bitcoin, Dash or Ethereum."
While there are plenty of reasons why employees may wish to receive Bitcoin as part of their salary, there are some things they should consider including the volatility of the currency and tax implications. "The CRA views cryptocurrencies as goods, so when you're paying employees in Bitcoin, you are actually participating in a barter transaction in which one good or service (the employee's work) is being paid for with another good (Bitcoin)," notes Julie Bevacqua, Rise CRO. This means that employees must pay capital gains tax on the increase in value of their Bitcoin, should it increase before they have a chance to spend it.
Rise's support staff are Certified Payroll Compliance Practitioners and can answer tax-related questions about paying employees in cryptocurrencies.
For further information about Rise, visit risepeople.com.