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More times than not, many cannabis business payroll providers suddenly drop their customers when they realize the industry is cannabis. As a result of banking or federal regulations, payroll providers tend to stray away from businesses within the cannabis industry.
Because of these regulations, many cannabis business owners are left scrambling for answers as well as searching for a new provider to manage their banking needs.
It’s a series of unfortunate events and also not solely limited to businesses within the cannabis industry. Other industries such as medical or pharmaceutical, experience payroll provider issues as well. So, if you think your business is safe, it might not be.
If you’re currently partnering with a cannabis business payroll provider, you’ve absolutely come to the right place. Even if you don’t immediately decide to find a better provider for your needs, it’s important to learn what makes a payroll provider stable and capable of providing you with the services your business, employees, and customers deserve.
What Makes a Great Cannabis Business Payroll Provider?
For starters, let’s briefly go over what a credible and dependable cannabis payroll company can do for your business. A great cannabis business payroll provider designs its business strategies specifically for the cannabis industry.
Some of the best payroll providers focus on eliminating back-office costs and complexities associated with running a business, so that you, as the owner, can focus on what’s important.
A great cannabis payroll provider protects your investments, advises in human resources, and aids you in navigating through the 280E tax law.
Are you unfamiliar with the 280E tax law? Read our article to learn more, Cannabis Banking and Understanding The 280E Tax Code.
Follow along as we go more in-depth on the best steps to take if you’re currently experiencing payroll provider issues within your canna-business, as well as the red flags to look out for in a payroll or HR services company.
Cannabis Business Payroll Providers: Tackling Your Problems
The cannabis industry is still relatively new. However, it’s evolving at a fast pace. It’s important to understand that the complexities of regulation and compliance don’t have to keep you from doing what you set out to do.
If your current cannabis business payroll provider isn’t cutting it, it’s time to start looking for a partner who truly supports and understands your needs. A payroll provider should be your trusted companion because after all, they’re the ones handling your money.
So, what sets a cannabis business payroll provider apart from the rest? What do you need to look for (or look out for) as your shopping around for a new partner? What qualifications are most valuable when it comes to choosing a cannabis banking provider? Let us explain!
Variety of Payroll Services for Cannabis Businesses
It’s critical to know that the variety of services a cannabis business payroll provider offers can often demonstrate the experience of the company. Now, this is not to say that choosing a provider who offers every service under the sun is the best out there. Keep in mind; it’s the actual services they provide to businesses, not the number of services, that matter.
When it comes to specific payroll needs within the cannabis industry, make sure the payroll provider you’re considering offers the following services:
HR Management Compliance
Whether your cannabis business is just starting up or you’re a seasoned veteran, a great payroll provider has the tools and resources to help you efficiently streamline your business and grow your bottom line.
No matter the type of HR compliance service you need such as, Human Resources Outsourcing (HRO), Administrative Services Outsourcing (ASO), the entire Suite of Services (Professional Employer Organization - PEO), or just payroll, you’ll want your partner to work with you every step of the way to make sure your business is operating under HR compliance regulations.
Payroll and Taxes
In this fast-paced economy, cannabis employees can work just about anywhere. But one thing holds true; they all need a paycheck. To stay ahead of the curve, it’s critical your payroll provider utilizes a modern payroll process.
Reporting and payroll history is mandatory so that you have direct access to viewing deduction registers, invoice history, payroll registers, and summary reports with a touch of a button through an online portal.
A competitive benefits program is crucial to not only attracting the right talent but retaining quality employees. Regardless of company size, location, or length of operation, make sure your cannabis business payroll provider helps create the perfect benefits package offerings.
Isn’t the overall goal of this article on finding the next steps to alleviating your banking issues? Make sure you dedicate time in finding a payroll provider who works with your member bank, banking liaisons, and cash depositories to keep accurate compliance records.
These efforts are essential so that your business meets FinCEN, BSA, KYC guidelines and requirements, in addition to other compliance-related monitoring and reports.
We also noticed there seems to be more risk following a partnership with a big box or mainstream payroll provider. Many of these larger companies are known for leaving their customers high and dry, or even worse, leaving employees unpaid.
To learn more about the right ways to pay your employees, read our article, Cannabis Business: How Do Dispensaries Pay Their Employees?
Cannabis-Industry Solutions That Stand Out
Alongside the types of services a cannabis business payroll provider can offer, it’s also a good idea to learn about their industry solutions. Because the cannabis industry is so dense, there are many different types of cannabis companies out there that produce or sell various services and products.
It’s imperative that a payroll provider can assist the individualized needs of your company. Take a look at some solutions we feel are most reputable and vital to look for:
If you’re in the retail cannabis space, this qualification is a must. As your cannabis dispensary and/or retail business grows, and as the industry matures, there will be an increased need to attract and retain the best talent, ensure compliance, and control costs, all while maximizing profits.
A great payroll provider has the suite of services your business needs to grow securely and efficiently.
The cultivation of marijuana sometimes raises more problems than other areas in the industry. You know you’ve found a great payroll partner if they can keep your business compliant with state and federal human resource & payroll laws, as well as managing your personnel.
Remember, when talking about cultivation, your business needs a variety of services to not only comply with human resource and payroll laws but to also set you apart from your competition.
Analytical and Testing Businesses
Before any payroll company provides you with services, make sure they run an assessment on your current payroll and human resources strategies. It would be challenging for your analytics operation to succeed if your payroll partner didn’t have any analytics on your current business practices.
As you probably know, the cannabis extraction business has exploded. Catering to this niche market is great for your business and customers. However, cannabis extraction and manufacturing falls under a different category than generic cannabis services.
An excellent cannabis business payroll provider helps identify all the steps in your business' cannabis extraction and manufacturing operations. Considering a thorough business concept allows this sector of your business to grow and succeed.
Packaging and Labeling Businesses
The terms and compliance regulations of the labeling and packaging of cannabis products continue to change, making it challenging to keep up. This means that you need a provider who is continually tracking these changes for you, as well as ensuring your business' packaging is permitted under federal regulations.
There’s a lot that goes into finding the best cannabis business payroll provider for your business, especially if you’re currently struggling.
It’s important to dedicate some time to researching different providers and assessing if they can truly cater to your pain points, while also supporting the growth and success of your business.
Greenleaf HR is here to educate and inform you on the cannabis banking industry while providing you with the resources your business needs to thrive. Whether you’re a current client or a business owner interested in cannabis banking services, we strive to supply you with the best ways a cannabis banking partner can support your business. To learn more about cannabis banking, HR, or financial services, or about any of the services we provide, reach out to us, here. Let us help you take your company forward faster.