I like your progressive approach. When you pay employees in Bitcoin, the IRS considers cryptocurrency as property for tax purposes. This means that employees receiving BTC as payment are subject to income tax on the fair market value of the BTC at the time of receipt. Employers must report this payment on W-2 forms in USD. It's imperative to accurately report the USD equivalent of the BTC paid at the time of each payment. To ensure compliance with IRS requirements, you must document how you determined the fair market value of the Bitcoin at the time of the payment.