Asked this question on 11/2/15 -Accounting
Is it legal to pay your employee in crypto currency like Bitcoin?
Crypto currency are popular and easy to manage, but i am not sure, whether it is legal or not to pay someone with it and manage your taxes same time.
Bitcoin is not considered money. however it can be used to pay an employee via a valid salary sacrifice scheme but it will be subject to Fringe Benefits Tax Assessment Act.
Thank you Katherine. It will help.
I find BitCoin and other crypto currencies so interesting. From a legal view point I have no idea how to classify them - are they currency? goods? something else? Are they subject to GST? Income tax? FBT (as Katherine mentioned above, in some circumstances, yes).
I also find people's motivations for using cryptos intriguing.
Personally, I find the wild fluctuations in the 'value' of each unit worrisome and woudl not agree to be paid in BitCoin.
Agreed ofcourse we cant buy beer in bitcoins can we ?
