@py2082 wrote:
... thanks for your answer.
And if I give this cryptocurrency as a gift/bonus to my employee, do we still have to pay taxe on it ?
I give the regular salary on Fiat currency, and I add a bonus on cryptocurrency. So, my employee will have two lines on is pay stub.
If I can do that, how much taxes should i deduce on this bonus ?
I just want give away cryptocurrency we got after selling arts. I was believing a salary on cryptocurrency will be the easiest way, maybe a bonus... but not really
If I don't declare we gave those cryptocurrencies to my employees, they won't be able to declare they have cryptocurrency.
Thanks for your help
The bonus, no matter how you pay it, must be reported on their W-2 in box 1, 3 and 5 along with their other taxable wages, and is subject to withholding for state and local income tax, social security and medicare tax, and any other state or federal requirements, such as unemployment, workers comp, or anything else that is based on the salary you pay.
You can create a separate line on the pay stub if you like, but the payment is still subject to all the regular withholding rules and must be reported on their W-2 (as well as form 941 and any similar state forms). (Example: when my wife's mother died, her employer gave her a gift card to purchase food or flowers for the memorial service. The value of the gift card was duly included on her pay stub, and the appropriate taxes were withheld in addition to her regular salary.)
If you pay the bonus in anything other than cash (including merchandise, barter, or cryptocurrency) then the value that must be reported and withheld from is the fair market value on the date the bonus is paid.
