Cryptocurrency, Contractor Payments and Statutory Costs
Digitization of Currency
In an article published by CNBC, the CEO of start-up fintech firm Circle said that every currency in the world — from the U.S. dollar to the Chinese yuan — will have its own cryptocurrency version. The article goes on to say that every flat currency will eventually become crypto.
As global leaders in compliant contingent workforce solutions for over 25 years, CXC Global have witnessed the emergence of payment platforms and digitized payments. The days of posting checks are long gone and new challenges are now faced by businesses to ensure they stay compliant in the face of digitization.
Part of CXC Global’s mission is to educate individuals and businesses around the globe to ensure proper worker classification and compliant engagement of their non-permanent workforce.
With digital transformation and digitization of currency, businesses will still be required to meet their statutory obligations and governments will be required to amend regulation to keep up with innovation.
“As global payments and currencies become digitized or centralized for easier international processing, the one certain that will remain is the nation allowing the transfer will still require their statutory costs be collected at the point of insertion or later on when annual taxes are due. That will put pressure on global payment companies to recognize reoccurring payments and shut down transfers if recipients are actually workers who require statutory costs to be deducted from their pay or reported for annual tax filings. ” Lou Calamaras, Director Global Client Solutions, CXC Global North America. Follow Lou on Twitter and connect on Linked-in.
To speak with one of our specialists or Lou directly about how we assist organizations in over 70 countries around the world to ensure compliant contingent workforce management and engagement, please complete and submit the below contact form.
Written by Kathryn Hopkins