BitPay Announces Bitcoin Payroll API
BitPay, the world's largest payment processor for virtual currencies, announces a beta release of their bitcoin payroll API for employers, which allows their W-2 employees to receive a portion of their net pay in bitcoin.
The Bitcoin Payroll API is designed for employers and payroll service providers. For employers using the service, their individual employees can opt-in to receive a net payroll deduction paid in bitcoin, on a recurring basis each pay period.
“For the longest time the hard question was ‘How do I buy bitcoin?'” says Tony Gallippi, co-founder and CEO of BitPay. “Now the answer is easy: ‘Ask your employer.'”
BitPay developed the bitcoin payroll API for its own use at the request of its employees, and has been using it with their payroll provider for over six months. BitPay is pleased to announce that they have 100% participation from their employees, meaning every BitPay employee receives some of their net pay in bitcoin. Four BitPay employees, including Gallippi, receive 100% of their net pay in bitcoin.
“This also clarifies the tax question around bitcoin,” adds Bryan Krohn, BitPay's CFO. “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 also announces that it has surpassed 20,000 approved merchants using its service to accept bitcoin, and is adding new merchants at a pace of 1,000 per week. Some of the recently added merchants include social game maker Zynga (ZNGA), private jet charter service PrivateFly.com, The Clevelander Hotel in South Beach Miami, and online travel agency BTCTrip.com.