Comparison of Top 7 Payroll Software Solutions for the Cannabis Industry

November 26, 2023

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1. Introduction

The cannabis industry, according to MJBizDaily, is projected to reach $33.6 billion by the end of 2023. The main driver being the opening of new adult-use markets. And it is expected to expand at a compound annual growth rate (CAGR) of 24.3% (2022-2027). Businesses in this industry face unique challenges in managing payroll especially due to evolving regulations and limited banking opportunities. There’s definitely growth opportunities but selecting the right product, targeting the right customers, selecting the right location and working with the right vendors is key.

To facilitate the greatest opportunity of growth, it is recommended to partner with a payroll provider that understands the cannabis space, can help with streamlining workforce management and aid in the unique compliance requirements of this space. In this document, we provide a competitive comparison across the major payroll software solutions who offer payroll for the cannabis industry:

We will explore their features, pros, and cons to help dispensary owners make an informed
decision about the best fit for their specific needs.

2. What are the requirements of a good cannabis payroll (including dispensary payroll) software?

Cannabis payroll software is an online solution for the cannabis industry and dispensaries. It can be an on-premises or a cloud-based system application that cannabis-related businesses employ to facilitate workforce management (including recruitment), employee payment and pay structure, attendance and punctuality, and even tax details.

A good cannabis and dispensary payroll software should allow for processing, compliance, and integration opportunities with the rest of the workforce management suite. In other words, the dispensary payroll software should make compliance with regulations one of its top priorities. It should also make provisions for integration with other operational systems such as POS systems, time clocks, and/or schedulers to ensure optimal benefits.

The payroll software saves businesses from the cost of human error when computing time, resources, and cash flow. It also provides compliance tips for cannabis businesses so that they can focus on building the business without slipping up on any regulatory issues.

Key features of cannabis payroll software:

Compliance with state and federal regulations: Cannabis businesses are subject to a variety of state and federal regulations, and the payroll software you choose should be able to help you stay compliant.
Automated payroll processing: Dispensaries typically have a high turnover of employees, and automated payroll processing can save you a lot of time and hassle.
Integration with POS systems: Many dispensaries use POS systems to track sales and inventory. A payroll software that integrates with your POS system can make it easy to track employee hours and generate payroll reports.
Integration with accounting software: Dispensaries also typically use accounting software to track financial data. A payroll software that integrates with your accounting software can make it easy to reconcile payroll expenses and keep your books in order.
Time tracking: A good payroll software should allow you to track employee hours and overtime. Dispensaries often use physical time-clocks. A good payroll software should integrate with different time-clocks in the market. This can help you ensure that you are paying employees accurately and complying with labor laws.
Employee self-service: A good payroll software should allow employees to view their pay stubs, W-2s, and other payroll information online. This can save you time and help employees stay informed about their pay.
Mobile app: A mobile app can be a convenient way for employees to view their pay stubs, clock in and out, and access other payroll information on the go.
Customer support: A good payroll software provider should offer excellent customer support in case you have any questions or problems.

In addition to these features, you may also want to consider a payroll software that offers the
following:

Reporting capabilities: A good payroll software should provide you with detailed reports on your payroll expenses, hours worked, and other payroll data. This information can be helpful for budgeting, forecasting, and making staffing decisions.
Payroll tax filing: A good payroll software should be able to file your payroll taxes with the IRS and state agencies. This can save you time and hassle.
Benefits administration: A good payroll software can help you manage employee benefits, such as health insurance, 401(k) plans, and paid time off. This can save you time and help you comply with benefit regulations.

Let’s now explore the features, pros, and cons of the major softwares to help Cannabis companies and dispensary owners make an informed decision about the best fit for their specific needs.

3. UZIO (Now AI Enabled)

UZIO Payroll is an all-in-one HR and payroll solution that specializes in the cannabis industry. It is the best comprehensive payroll solution designed for the cannabis industry. It offers a range of features to streamline workforce schedule management, ensure compliance, and simplify payroll processing for dispensaries and cannabis-related businesses.

Pros:

Now AI Enabled: With it’s newest and HR industry’s first UZIO AI Copilot feature it is revolutionizing HR and payroll management. Watch AI Copilot in action.
All-in-One HR and Payroll Solution: UZIO Payroll offers a comprehensive platform that combines HR and payroll functionalities, providing convenience and efficiency for dispensaries and other Cannabis businesses.
Customer Support: Best in the class customer service and response.
User-Friendly Interface: The software’s user-friendly interface makes it easy for Cannabis business and dispensaries to navigate & manage their payroll and HR tasks.
Transparent and most economical in-the-segment pricing: UZIO offers the best pricing and that is free of any hidden charges.
Employee Benefits Management: The software offers benefits management features, allowing dispensaries to manage employee benefits effectively.
Tax and Payroll Compliance: UZIO Payroll ensures compliance with payroll taxes and other regulatory requirements, reducing the risk of legal issues.
Integration Opportunities: UZIO Payroll integrates with other operational systems such as POS systems and time clocks, streamlining business operations.

Cons:

New Entrant in the market: Although UZIO is relatively new when compared to some of the above mentioned players, it has created a buzz in the market with its innovation and best customer support.

4. KayaPush

KayaPush offers a robust and user-friendly system for dispensary payroll management. It prides itself on simplifying payroll processing with the push of a button, providing an efficient solution for dispensary owners.

Pros:

Streamlined Payroll Processing: KayaPush streamlines approved employee hours directly to payroll, reducing manual data entry and potential errors.
Integration with Leading POS Brands and Bookkeeping Solutions: KayaPush seamlessly integrates with leading cannabis POS brands and bookkeeping solutions, providing transparency and ease of use.
Multi-Unit Monitoring: KayaPush offers multi-unit monitoring capabilities, making it an excellent fit for dispensaries operating as part of a chain.
Automated Statutory Holiday Pay Calculations (Canadian users): For Canadian users, KayaPush automates statutory holiday pay calculations, saving time and ensuring compliance.
Ease of Use: KayaPush is known for its user-friendly interface, making it an ideal tool for managers or business owners looking to manage their hourly employees efficiently.

Cons:

Automated Holiday Pay Calculations (American clients): While KayaPush offers automated statutory holiday pay calculations for Canadian users, they are still building out state-by-state capabilities for American clients.
Limited Availability: KayaPush is available in specific states and provinces, which might limit its accessibility for some businesses.

5. ADP

ADP is a comprehensive global provider of cloud-based human capital management solutions, offering payroll, HR, talent acquisition, tax and benefits administration, and time tracking. While not specialized in the cannabis industry, ADP caters to companies of all sizes across various industries.

Pros:

All-in-One Solution: ADP offers an all-in-one solution for HR and payroll, providing convenience and efficiency for dispensary owners.
Extensive Integration Ecosystem: ADP’s platform offers an extensive integration ecosystem, making it easy to work with existing software and systems.
HR Outsourcing Options: ADP provides HR outsourcing options, allowing businesses to outsource some or all HR tasks to dedicated experts.
HRIS Solution: ADP offers partner solutions and consulting services, providing comprehensive HR support.
Compliance Expertise: ADP’s long-standing experience and compliance expertise can benefit dispensaries operating outside the cannabis industry as well.

Cons:

Not Specialized in Cannabis: ADP does not specialize in the cannabis industry, which may lead to some industry-specific functionalities being absent, such as cannabis compliance.
Limited Availability for Cannabis Space: ADP may not offer its services to those in the cannabis space due to federal banking regulations, leading to uncertainty for cannabis businesses.
Missing Payroll Automation Features: Some key payroll automation features, like automated ROE filing, automated stat holiday pay and overtime calculations, and automated payroll tax calculations, are not included.

6. Gusto

Gusto is a modern, online-based payroll software that offers numerous services and integrations, making it a popular choice for small, medium, and large businesses. It provides payroll and benefits management, simplifying HR processes for dispensaries.

Pros:

Full-Service Payroll: Gusto integrates workforce management services like time and attendance tracking, health insurance, and retirement planning into its payroll solution, providing comprehensive support for dispensary owners.
User-Friendly Interface: Gusto’s friendly and easy-to-use interface maintains precision and accuracy while simplifying payroll management.
Multiple Employee Account Access: Gusto allows multiple employees to use the same account, saving costs and streamlining operations.
HR Document Templates: Gusto offers numerous HR document templates crafted by experts, saving time and resources for businesses.
HR Support Experts: Gusto provides a dedicated team of HR support experts, protecting businesses from costly compliance mistakes.

Cons:

Reporting Tools: Some users have found Gusto’s reporting tools to be less robust compared to other software solutions.
Internet-Based Interface: As an internet-based platform, Gusto’s productivity may be impacted in areas with slow internet connectivity.

7. Green Leaf HR

Greenleaf HR is a regulation-focused cannabis industry-based software that allows dispensaries to outsource all their payroll services. It employs a cloud-based integration system that ensures every essential detail is covered, providing access to high-quality insurance and employee benefits through its unique PEO model.

Pros:

Payroll and Tax Services at the Touch of a Button: Greenleaf HR takes the burden of payroll and tax services off the client’s shoulders with its easy-to-use platform, streamlining business operations.
Time and Attendance Tracker Integration: The software integrates payroll with a time and attendance tracker, saving dispensaries time and cost on workforce management.
Regulation Compliance Support: Greenleaf HR handles the regulation requirements for state and federal law, keeping dispensaries compliant with evolving cannabis regulations.
Dedicated HR Support: With unlimited and dedicated HR support, Greenleaf HR ensures businesses have access to expert advice and guidance when dealing with HR-related issues.

Cons:

No POS Integration: Greenleaf HR lacks integration with Point of Sale (POS) systems, which may be a limitation for dispensaries looking to measure sales versus labor efficiently.
Limited Health and Retirement Benefits: The software may not offer as many health and retirement benefits for employees compared to some other payroll solutions.
White-label platform: Green Leaf uses a white-labeled platform from another vendor resulting in delays in addressing customer requests for changes and enhancements.

8. Paragon Payroll

Paragon Payroll is a specialized cannabis industry platform that offers comprehensive HR, payroll, and compliance solutions. It caters specifically to cannabis-related businesses, ensuring industry-specific functionalities and features.

Pros:

Cannabis Industry Specialization: Paragon Payroll is designed specifically for the cannabis industry, making it an ideal fit for dispensaries and cannabis-related businesses.
Compliance-Focused Features: The software prioritizes compliance with ever-changing cannabis regulations, reducing the risk of legal issues for businesses.
Integrated HR and Payroll Solutions: Paragon Payroll offers integrated HR and payroll solutions, streamlining workforce management and payroll processing.
POS and Seed-to-Sale Integrations: The software integrates with POS and seed-to-sale systems, providing valuable insights and data for better decision-making.

Cons:

Limited Availability: Paragon Payroll’s availability might be limited to specific regions or states, potentially restricting access for some dispensaries.
Customer Support Quality: The level of customer support provided by Paragon Payroll might vary, affecting the user experience for some businesses.

9. Wurk Payroll

Wurk Payroll is a white-labelled payroll solution from another vendor. It offers a range of features to streamline workforce management, ensure compliance, and simplify payroll processing for dispensaries and cannabis-related businesses.

Pros:

Cannabis Industry Specialization: Wurk Payroll is tailored for the unique needs of the cannabis industry, providing industry-specific functionalities and compliance support.
Workforce Management Integration: The software seamlessly integrates with workforce management systems, optimizing employee scheduling and attendance tracking.
Automated Payroll Calculations: Wurk Payroll automates payroll calculations, reducing manual errors and saving time on payroll processing.
Tax and Regulatory Compliance: The software stays up-to-date with the ever-changing cannabis regulations, ensuring dispensaries remain compliant with local and federal laws.
Employee Self-Service Portal: Wurk Payroll offers an employee self-service portal, empowering employees to access their payroll information and other HR-related data.

Cons:

Limited Availability: Wurk Payroll’s availability may be limited to specific states or regions, potentially restricting access for some cannabis businesses.
Customer Support Response Time: Some users have reported issues with customer support response times, affecting the overall user experience.
White-label platform: Wurk uses a white-labeled platform from another vendor resulting in delays in addressing customer requests for changes and enhancements.

Recommended Reading: Biggest pain point with Payroll and HR software

10. Cannabis Companies - Relationships are Key

Last thing to consider. What is the reputation of the payroll provider? Don’t just look at what is commonly referred to as the “pay to play” referring sites. Any vendor can pay for that high rank. Look at what customers are saying. Speak to other cannabis businesses. You can even look at job sites like Glassdoor to see what employees are saying. Request references and take some time to do your research on these companies.

11. Conclusion

In conclusion, your best bet is a payroll provider that understands your unique business needs and is offering a cost effective solution. Many tend to go for the seamless solution that offers all-in-one HR and payroll. User-friendly interface and integration opportunities are also key benefits to look for to aid your cannabis businesses. Look for compliance-focused features and seamless workforce management integration.

Business owners should consider factors such as industry specialization, geographical availability, industry-specific features, and integration opportunities to make an informed decision that best suits their business operations in the cannabis industry.

Get in touch with us for an expert-led demo to know more about UZIO all-in-one payroll software.