Breaking Down Payroll Costs for Cannabis Companies: UZIO vs. Competitor

Breaking Down Payroll Costs for Cannabis Companies: UZIO vs. Competitor

 October 8, 2024

1. Introduction: The Cannabis Industry’s Unique Payroll and HR Challenges

Cannabis-related businesses (CRBs) face unique regulatory hurdles, from federal tax restrictions like the 280E tax code to varying state compliance rules. Managing payroll, HR, and benefits in this environment can be costly and time-consuming, with a higher risk of non-compliance.

Finding a payroll provider that understands these complexities without charging excessive fees is a major challenge. While some services like Gusto support CRBs, they often impose premium pricing due to compliance demands. But is paying more necessary? UZIO offers a smarter, cost-effective solution tailored specifically for the cannabis industry—without the steep price.

2. Our competitor's High Costs for Cannabis Clients: A Deep Dive

Gusto is a well-known payroll provider, but for CRBs, they charge their highest-tier Premium plan, costing $135 per month plus $16.50/mo per employee (2.75 times for a non-cannabis company). This makes Gusto a significant investment for CRBs, especially larger ones. Gusto justifies these high prices due to the compliance complexities cannabis businesses face, offering features like a dedicated customer success manager and compliance alerts. However, many CRBs question whether these features justify the steep cost, especially for smaller companies.

Gusto Offering Only Premium Pricing Plan to CRBs
Gusto's Premium Pricing Plan for CRBs

Moreover, Gusto’s pricing for CRBs seems disproportionate compared to non-cannabis businesses (costing $40 per month plus $6/mo per employee) raising concerns of unfair treatment. In an industry where margins are tight, these costs can add up quickly. UZIO, on the other hand, provides a more affordable, transparent alternative with flat pricing and no industry-based premiums.

3. UZIO’s Transparent and Affordable Pricing Model

UZIO offers a flat-rate pricing model that doesn’t penalize businesses based on their industry, with payroll services priced at just $6.50 per employee per month. This flat rate includes all essential features for CRBs to stay compliant, without the hidden fees or premium charges imposed by Gusto.

UZIO's Transparent Pricing for SMBs including CRBs

Unlike Gusto, UZIO’s pricing remains the same for all businesses, ensuring fairness and predictability. CRBs can scale their operations without worrying about rising payroll costs. UZIO also provides cannabis-specific features like automated tax compliance and multi-state payroll management, making it a cost-effective solution tailored to their unique needs.

Another important issue of Gusto is cannabis customers experiencing price increase 3-6 months after they go live. And that is absolutely not the case with UZIO as it offers a uniform and consistent pricing models. Even if there is a marginal price increase, it is not specific to a client or a sector.

And lastly we have encountered situations where a cannabis client is paying for products/modules they don’t need. For e.g. 20 person companies paying $50+ PEPM and only using 10% of the the features. Here again, with UZIO’s flexible pricing options you pay for only what you use. One can opt for individual modules and add on modules only when required.

In a market where many providers overcharge CRBs, UZIO stands out with its affordable, comprehensive services designed to help cannabis businesses thrive.

4. AI-Powered Efficiency: UZIO’s Game-Changing AI Copilot

One of UZIO’s standout features is its AI-powered tool, AI Copilot, which automates payroll and HR processes, saving time and enhancing compliance for CRBs. Instead of manually pulling reports or tracking metrics like pay equity and turnover, AI Copilot provides instant insights with just a query.

AI Copilot can:

  • Analyze Pay Equity across employees based on factors like gender and job title.
  • Track Attrition and Turnover rates by department or location.
  • Monitor Workforce Diversity, helping CRBs meet inclusivity goals.

Unlike Gusto’s manual reporting, UZIO’s AI Copilot streamlines complex tasks, offering faster, smarter solutions. By reducing manual work and delivering real-time data, UZIO empowers cannabis businesses to make better decisions while cutting costs, making it the superior payroll solution.

5. Why UZIO is the Ideal Payroll Provider for Cannabis Businesses

CRBs face unique challenges, from complex regulations to compliance management. UZIO offers a payroll and HR solution tailored to the cannabis industry, without the high costs seen with services like Gusto.

Unlike Gusto’s one-size-fits-all approach, UZIO provides focused, affordable solutions that address CRB-specific needs. Key advantages include:

  • Industry-Specific Expertise: UZIO automates compliance, including 280E tax and multi-state payroll.
  • Transparent, Affordable Pricing: Flat rates for all businesses, avoiding Gusto’s premium pricing for CRBs.
  • AI-Powered Efficiency: UZIO’s AI Copilot streamlines payroll, compliance, and workforce analytics.
  • Seamless Compliance Support: Automated checks keep CRBs compliant with changing regulations.
  • Dedicated Customer Support: UZIO ensures expert assistance for all payroll and compliance issues.

UZIO’s customized solutions, backed by AI and fair pricing, make it the best choice for cannabis businesses. Unlike Gusto, which charges significantly more, UZIO helps CRBs grow and thrive without inflated payroll costs.

6. Conclusion: The Smarter Choice for Cannabis Payroll

For CRBs, managing payroll and HR functions can be a complex and costly endeavor. Gusto’s high Premium plan pricing often forces businesses to pay more than necessary for features they may not fully utilize. This is where UZIO provides a clear advantage.

UZIO’s tailored payroll solutions for the cannabis industry, combined with AI-powered automation and transparent, flat-rate pricing, offer a smarter, more cost-effective option. 

By choosing UZIO, cannabis businesses can reduce administrative burdens, improve operational efficiency, and focus on growth. With UZIO’s industry-specific expertise and affordable pricing, it’s easy to see why it’s the superior choice for CRBs looking to streamline their payroll and HR processes.

To know more about UZIO Payroll/HR solution for the cannabis industry and get in touch with us for an expert-led demo.