A company in Isreal is planning to pay their employees through the most popular cryptocurrency, Bitcoin. The company is into social networking and is called Spot.IM.
Spot.IM is a social engagement platform that helps build online communities using digital content. It is headquartered in New York with previous work that includes top-notch companies such as AOL, NBC, and even Fox News.
Miri Regev is the CEO and CTO of Spot.IM. Regev earlier was responsible for founding Soluto which is a device protection service that integrates mobile application, web portals, proactive communications and remote device management into one service.
Spot.IM will pay employees using Bitcoin once they get permission from the Israel Tax Authority. Since the salary paid to an employee has taxation to it, the company will have to thoroughly discuss how it will go about it with the concerned Israeli department.
Spot.IM will open an account on a cryptocurrency exchange where the monthly salary will be converted to Bitcoin and send to the employee’s digital account. The BTC value will be the average of the highest and lowest BTC value on the specified day of transfer so that the volatility doesn’t affect the payment.
The staff has the option to either receive Bitcoin or Fiat or a mixture of both in 50% slabs.
So far the staff is excited with BTC payments as they do not bear the conversion fees.
The other benefits will be transferred through fiat for now, as Spot.IM wants to roll onto BTC step by step.
So far cryptocurrencies are assets that have a capital gains tax in Israel, and thus employee’s will have to pay a 25% tax on the Bitcoin gains they earn.
With the implementation of Spot.IM’s payment to employees through Bitcoin, it will further encourage companies in Israel and the world to look into crypto payments to its workforce.
Israel is still getting used to cryptocurrency, with many authorities against the idea. For example in March 2018, Israel Securities Authority (ISA) said that cryptocurrency firms would not be listed on the Tel Aviv Stock Exchange.
Image Source: “Flickr”