When you’re running a CBD dispensary or a cannabis dispensary, you need to be prepared to find experts who can help you stay compliant in all aspects for your business. If you’re nervous about handling payroll and taxes, a payroll company might be able to ease your burden. These companies can help you not only stay compliant but provide other beneficial management tools as well.
The Best Payroll Companies for Cannabis Dispensaries
Dispensaries are a relatively new industry, so your payroll company options might be more limited than other industries. Even so, a few payroll companies specialize in the cannabis industry and others have begun to serve dispensaries in addition to other industries. Here are some of the best payroll companies for you to consider.
Zenefits
Zenefits is not a platform that is specifically geared toward cannabis companies, but it has features that can benefit dispensaries. The system can be integrated with other programs, including popular accounting platforms such as Quickbooks and Guideline. Zenefits also automates compliance tasks to help you save time and avoid mistakes.
Pricing: $6 per month per employee as an add-on to the base plan. Base plans start at $8 per month per employee.
Features: Zenefits features include a new-hire onboarding sync, which syncs their information to payroll immediately so there’s no wait time. Employers and employees can also use time and scheduling tools to log hours, breaks and time off in the payroll system. If an employee enrolls in a benefits plan, Zenefits can automatically execute the proper deductions.
There are features specifically for payroll administration as well. This feature includes automatically prorated payments for new hires, pay previews and automated reminders and tasks. You can also give employees dynamic pay stubs and add pay stub messages when needed.
Good for: Dispensaries that are large enough to need an HR system
Pros:
- Payroll compliance can help dispensaries manage payroll taxes.
- Zenefits can be integrated with other platforms, including Quickbooks.
- Features allow for more transparent communication with employees.
Cons:
- You can only use Zenefits payroll as an add-on to the base HR plans.
- The program isn’t exclusively for the cannabis market.
AdaptiveHR
AdaptiveHR was created to provide a fully integrated and customized payroll solution to service the cannabis ecosystem. It also offers HR, employee benefits and 401(k) retirement solutions. The payroll team delivers full payroll processing and tax administration solutions through its secure, cloud-based technology platform and strict process discipline.
Pricing: Information is not provided on the website, but you can schedule a business consultant to discuss the needs of your business as well as pricing.
Features: AdaptiveHR provides just about everything that a dispensary would need from a payroll company. It offers full payroll processing, including delivery for reports and payroll as well as a full suite of payroll reports. You can integrate time and attendance systems with the platform as well as W-2, benefit and deduction processing. Additionally, AdaptiveHR provides federal, state and local payroll tax filing and remittance as well as census reporting.
Good for: Any dispensary that wants to use advanced payroll software
Pros:
- Specifically designed for the cannabis industry
- Federal, state and local payroll taxes
Cons:
- No pricing information available on the AdaptiveHR website
Würk
Würk has developed cannabis software for payroll and human services. It specifically focuses on ensuring compliance for its clients, especially in an industry that has many regulatory agencies to comply with. The software can also help you handle HR tasks such as recruiting and maximizing profits.
Pricing: Information not available on the website, but you can request a demo to get a customized quote.
Features: The full-service payroll platform from Würk can be used to make running a dispensary as efficient as possible. The company’s focus on the cannabis industry gives it a level of reliability that you might not find from other companies that don’t specialize in the industry. With Würk, you can calculate and remit accurate taxes and reduce the risks of paying your employees. It also gives you a reliable payroll system and the ability to offer direct deposit, pay history, pay stubs and other financial documentation to your employees.
Good for: Small, mid-sized and large dispensaries
Pros:
- Specializes in the cannabis industry
- Creates solutions for small businesses
Cons:
- No pricing information available on the website
Greenleaf HR
Greenleaf is a popular name in the cannabis HR space. It was designed specifically for this industry and has helped serve the needs of cannabis-based companies for years. Greenleaf has a commitment to follow regulation changes to help keep its clients compliant and protected.
Pricing: No information available on the website, but you can request a free demo to learn more.
Features: Greenleaf HR offers a modern payroll process to help dispensaries and other businesses in the industry make sure their employees are paid on time. Employers have access to the deduction register, invoice history, payroll register and previous data through the system. The platform also handles federal and state payroll tax computation as well as government filings.
Good for: Any size dispensary
Pros:
- Specializes in the cannabis industry
- Free demo
Cons:
- No pricing information available
- Doesn’t offer as many features as some of its competitors
PeopleGuru
PeopleGuru gives dispensaries the tools they need to manage an employee’s complete lifecycle. The platform offers several services in addition to payroll, including HR management, talent management and workforce management. While the company serves several industries, it has solutions that are tailored to the needs of dispensaries.
Pricing: You complete an online form to request a custom quote.
Features: Dispensaries can trust PeopleGuru to help protect every aspect of the business that it can. Its software is backed by a dedicated team to ensure that your business stays compliant. The team stays informed of changing tax laws and requirements to ensure that all filings are accurate. PeopleGuru also offers full-service banking for dispensaries. This service is in compliance with FinCEN guidelines and in accordance with the Safe Harbor Banking Network. It includes an assigned compliance consultant, client compliance audits and ACH process for payroll and tax deposits.
Good for: Any size dispensary
Pros:
- Customized solutions for dispensaries
- Offers full-service banking
Cons:
- You have to request a quote to get pricing information.
How Does a Payroll Company Help Your Business?
You might be wondering how a payroll company or other professional employment organization (PEO) can help your business, especially if it’s a small business. The truth is that payroll is a fairly repetitive operation and can easily be outsourced. By using a payroll company, you can free up some of your time so you can focus on more productive aspects of your business. Payroll companies can also keep track of details to ensure that your company is in compliance with payroll regulations.
Some of the main advantages of using a payroll company are:
- It saves time, so you can focus on other business matters that need your attention.
- Using a payroll company guarantees compliance and helps businesses prevent unnecessary mistakes.
- Payroll companies can assist your employees with payroll issues and questions.
Drawbacks of Using a Payroll Company
No matter how many benefits payroll companies can provide, using a payroll company may not be the best option for all businesses. It all depends on your goals, budget and employees. When deciding whether to outsource your payroll, there are some things that you should consider:
- Business owners don’t have as much control over the company’s payroll operations.
- Using a payroll company adds an extra expense to your business operations.
How to Maximize Your Payroll Partnership
If you decide to hire a payroll company, the first step to maximizing your partnership is picking the company that is right for you. You’ll want to consider the payroll company’s process and the amount of access that you’ll have to your payroll information. Another factor to consider is how the payroll company will keep your business and your employee data safe.
Once you’ve selected the payroll company that is right for your business, you can get the most out of your working relationship by:
- Trusting your payroll company’s advice and respecting their expertise
- Setting up a good system so you can let the payroll company to do their job while you focus on the business
- Staying in communication with your payroll company and providing needed information and documentation in a timely manner
Frequently Asked Questions
How does a payroll company work?
Payroll companies work with businesses to make sure that they are meeting legal obligations and paying employees on time. Payroll companies use systems that can monitor employee time and attendance, integrate benefits and calculate payroll taxes and deductions.
How does a payroll company get paid?
Most payroll companies charge businesses a fee for each employee that is on the payroll. Some companies charge per employee per month while others may offer fixed pricing. You should make sure you understand the payment structure of each payroll company before you select one.