Sequoia Holdings LLC has begun offering employees the option to receive a portion of their salary in cryptocurrencies such as Bitcoin. This will enable crypto buffs in the Reston, Virginia-based software firm to invest part of their salaries in cryptocurrencies.
Under the new program, Sequoia employees may elect to defer a portion of their salary into Bitcoin (BTC), Bitcoin Cash (BCH), or the Ethereum platform’s ether (ETH).
“Many of our employees are enthusiastic supporters of cryptocurrency, and we’re happy to help them gain exposure to this trillion-dollar asset class,” said Richard Stroupe, Jr., co-founder and CEO of Sequoia.
Sequoia said it is partnering with a third-party payroll processing firm to withhold taxes and convert the remainder into cryptocurrency, which will be held in a digital wallet administered by the payroll processor. However, it did not reveal the name of the payroll processing firm.
The company compared the option to how an employee would defer a portion of his or her salary toward a 401(k) retirement savings plan. However, here the deferral is after tax.
Russell Okung, an American football offensive tackle for the Carolina Panthers of the National Football League, recently confirmed that he received half of his $13 million salary in Bitcoin. He has been requesting to be paid in cryptocurrency for the past two years.
In November last year, Digital Asset Investment Management (DAiM) rolled out the first ERISA-compliant employer-sponsored 401(k) retirement plans that support Bitcoin (BTC). Employers of any size can adopt these plans for the benefit of their employees.
DAiM will serve as the advisor and fiduciary to help companies create a 401(k) Plan with access to Bitcoin that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10 percent to Bitcoin. The employee also has an option to allocate more to Bitcoin.
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