Remote’s new integration with Coinbase enables salary payments in crypto

As cryptocurrencies gain popularity, more companies are jumping on the crypto salary bandwagon. Why? Because it’s an exciting new way to attract top talent, boost employee satisfaction, and simplify global payroll.

And Remote can help make that happen thanks to our integration with Coinbase! 

But how do you implement crypto salaries effectively?

In this article, we explore real-world examples of companies that are already implementing crypto salaries and the cryptocurrencies they’re using. We also cover how these salaries are taxed in the US and how you can do the same with Remote.

Let’s dive right in.

For employees

Employees who are paid in crypto also have some tax responsibilities. Here's what you need to know:

• Reporting income: You need to report your crypto salary on your tax return, just like ordinary income.

• Capital gains tax: If you hold onto crypto and sell or exchange it later, any gain or loss is subject to capital gains taxes. The basis for this tax is the fair market value at the time you received the crypto.

• Long-term vs short-term gains: If you hold the crypto for more than a year before selling, then you must pay long-term capital gains tax. This usually has lower rates than short-term capital gains tax (for assets held less than a year).

• Record keeping: Keep track of when you receive the crypto, its value then, and any dates and values when you sell or exchange it. This makes tax time a lot smoother.

Why employees want their salary payments in crypto

Why would your employees want to receive payments in crypto? Digital assets come with a few advantages:

• No boundaries: As more employees work remotely, cryptocurrencies can be used and exchanged internationally. Crypto prices are independent of local currencies, making crypto appealing to people who need easy access to money while traveling.

• Speedy payments: Cryptocurrency transactions are processed quickly — often within minutes — regardless of the recipient’s geographical location. Many people enjoy using crypto because it lets them avoid the often days-long wait times of traditional banking.

• Zero banking fees: Banking fees can be frustrating. With cryptocurrencies, fees tend to be low or nonexistent, allowing users to keep more of their money during transactions.

• Investment growth: Cryptocurrencies can be unpredictable, but they also have the potential to increase in value. Employees who decide to keep their crypto payments might see their wealth grow if the value of their currency goes up.

• Financial privacy: Crypto transactions provide more privacy than traditional banking, which is great for those who value keeping their finances private.

• Flexibility in use: Cryptocurrencies can easily be converted into other cryptocurrencies or fiat money, making them a flexible way to manage your finances. Some merchants even accept crypto directly.

• Protection against inflation: In regions with high inflation rates, cryptocurrencies can be a more stable option compared to local fiat currencies.

Whatever your team’s reasons for choosing crypto, Remote and Coinbase allow you to provide more options to meet their needs.

Paying employees in crypto through Remote

While there are many ways to pay your employees crypto salaries, doing so through Remote is the easiest option. Here’s why:

• Easy to set up and manage deposits: Simply choose the amount and currencies (including a variety of cryptocurrencies, stablecoins, or USD) to receive. Users can update their preferences at any time within the Coinbase app or on coinbase.com. Users may also be eligible to receive paychecks up to two days early.

• Mitigate market volatility with regular investments: Regularly scheduled deposits are an easy way to maintain dollar-cost averaging (DCA) for crypto investments.

• Choice of cryptocurrency: Employees can choose which of the cryptocurrencies supported by Coinbase they wish to get paid in.

Greater flexibility and control with crypto salary payments

Remote’s split payments capability allows full-time employees to define percentage breakdowns between each deposit method.

Split payments are a great option for employees, whether they choose to receive a portion in crypto or divide their payments among multiple bank accounts. Split payments put financial control back in your team members’ hands.

• Employees can define multiple deposit methods directly on Remote, making it easy to manage salary payments.

• Through Coinbase, workers employed through Remote can now deposit a part of their salary into crypto automatically. Crypto support enables instant transfers into their Coinbase account with zero fees.

Connecting a Coinbase account to Remote

If you’re employed through Remote and choose to have a portion of your salary deposited into your Coinbase account, we transfer the USD amount to your Coinbase account automatically.

Coinbase converts the transferred USD amount into your cryptocurrency of choice without adding any platform fees, allowing you to maximize your investments.

Remote customers can learn more about setting up this integration in the Remote Help Center.

FAQ about crypto salaries through Remote

What are the benefits of a crypto salary for the employee? 

Employees get full control over how they receive their salary payments, all directly on the Remote platform.

Are there any additional fees for converting my salary to crypto? 

If you choose to be paid in crypto, Coinbase will automatically convert your payment from US dollars to crypto with no transaction fees.

Is this available for both full-time employees and contractors? 

At this time, this feature is only available for people employed full-time through Remote and based in the United States.

How much of my salary can I deposit into my Coinbase account? 

You can use the split payments capability on Remote to define the salary percentage split that should be transferred to your Coinbase account.

Can I choose to get paid in a specific cryptocurrency? 

You’ll be able to see a list of all the cryptocurrencies that Coinbase supports as you set up your account. Choose the cryptocurrency you want to receive your payment in, and start saving!

Remote brings greater financial flexibility to your workforce

Offering your employees a crypto salary, whether in part or in full, is a fantastic way to attract top talent. Be it Bitcoin, Ethereum, or stablecoins — if Coinbase supports it, you can offer it. And there's no better way to manage this than through Remote.

The ability to split payments across multiple accounts, including cryptocurrencies powered by Coinbase, can help businesses offer greater flexibility to their teams. For employees who enjoy exercising more control over their financial assets, splitting salary payments is a great way to make personal finance a little easier.

Want to learn more about Remote’s global payroll capabilities? Contact us today to speak with a global employment expert.