A bonus is a payment to an employee above their regular salary or wages, usually for good performance. It can be either a contractual entitlement or voluntary payment.
Are crypto assets as a bonus subject to PAYE or FBT?
The first step is to consider whether a payment is subject to PAYE. Generally, monetary payments are subject to PAYE and non-monetary payments are subject to FBT. For more on the general PAYE and FBT rules regarding crypto click here Crypto assets are not money as commonly understood, they are property. They are not issued by any government and aren’t a generally accepted form of payment due to their volatility.
Under employment law, bonusses are part of salary/wages and must be monetary. However, employees can opt to receive the bonus in other forms including crypto assets. PAYE will then be applicable to the monetary amount of the bonus. Therefore, PAYE will apply regardless of whether the bonus is in cash, an equivalent amount of crypto assets or a combination of both.
The law surrounding crypto assets is still vague and complex as it is new, for specific advice regarding your situation, contact us below.
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