cryptocurrency, so if you have employees in those countries, you would need to be very careful about how you pay them. Finally, it’s worth noting that crypto isn’t regulated when it comes to social securities like pensions and healthcare. Also, if an employee wanted to take out a mortgage, they would be unable to use their crypto earnings as collateral. So, while there are some definite benefits to paying your employees in cryptocurrency, it’s important to weigh up the risks before making the decision. A Hybrid Model Could be the Answer So, what’s the solution? While some definite risks are associated with paying your employees entirely in cryptocurrency, that doesn’t mean that the idea is a non-starter. One way to mitigate some risks would be to adopt a hybrid model, where employees are paid part of their salary in crypto and part in fiat currency. For example, suppose you pay your employee £5,000 a month. They could opt-in to receive 10% of that, or £500, in crypto. This would give them the opportunity to participate in the upside of cryptocurrency without being completely exposed to the downside. For this model to be successful, the option to be paid in crypto would need to be voluntary. Employees would also need to be allowed to convert their crypto earnings into fiat currency on a regular basis. Final Thoughts Paying employees in cryptocurrency is a great way to attract and retain top talent, but it’s important to remember that there are some risks associated with this approach. A hybrid model, where employees are paid part of their salary in crypto and part in fiat currency, could be a good way to mitigate some risks while reaping the benefits. Working with a reputable payroll provider with experience in paying employees in cryptocurrency is essential to ensure that your business stays compliant. They’ll be able to: ● Help you choose the right cryptocurrency for your needs. ● Convert fiat currency into crypto. ● Pay your employees in crypto. ● Monitor compliance regulations and ensure that you’re always up to date. About Jamie Haerewa As Co-founder and Managing Director at Agile HRO, Jamie Haerewa helps businesses expand their remote workforces by merging cuttingedge technology with industry experts. With 12+ years of experience in the global PEO, global mobility, and workforce solutions, she is a recognised thought leader with her valuable insights featured in popular publications like Business Leader, Grit Daily News and HackerNoon. Her hard work and determination have resulted in her company being awarded the #1 payroll provider in Singapore in 2020 and SME100’s fastestmoving company in 2022. She is also committed to giving back to the community and is a proud sponsor of education for the next generation of Cambodia through the not-forprofit organisation Caring for Cambodia. Finance Monthly. Fron t Cove r Fea t ur e 11
RkJQdWJsaXNoZXIy Mjk3Mzkz