Bitwage Launches Bitcoin 401(K) Plan for Businesses, May Help Solve Feds 75% PPP Requirement
- Bitwage introduces its new Bitcoin 401(k) contribution plans to companies in the U.S Small Business Administration (SBA) program.
- The plan mainly targets employers who can’t meet the 75% employee benefits requirements in a bid to keep employees at work.
The U.S government launched the $660 billion SBA under the Paycheck Protection Program (PPP) in a bid to keep Americans employed through the current COVID-19 pandemic. The government offers a 100% forgiveness deal in the grant if the small and medium-sized (SMEs) are able to use 75% of the amount in payroll services.
This task wasn't easy but a hero is emerging from the crypto industry with Bitwage, the blockchain-based payroll firm, offering to enroll companies in its Bitcoin 401(k) program. According to the statement release, Bitwage will convert some of these loans to 401(k) of the employees enabling companies to hit the 75% target. The statement further reads,
“This gives companies an opportunity to provide matching or profit sharing contributions to employee 401k accounts in order to help close the gap to receive full loan forgiveness. Together with the PPP program, the Bitwage Bitcoin 401(k) Plan allows employers to get more out of their PPP loans, while providing their employees new and innovative investment options.”
Bitwage is a payroll platform that allows users to directly convert their salaries and get paid in crypto. The firm has seen widespread adoption across the world, launched in Chile last year, allowing freelancers to be paid with BTC, ETH or Bitcoin cash. The platform also allows users to directly pay their taxes and earn compensation rewards in cryptocurrency.
The Bitcoin 401 (k) plan will include two other cryptocurrency firms – NYSDF regulated crypto exchange, Gemini, and crypto custodian, Kingdom Trust. Leading Retirement Solutions, will keep records for the 401(k) plan with the Department of Labor and the Internal Revenue Service (IRS).