Running payroll for a cannabis business isn’t like handling payroll for your typical company. You’re dealing with banking restrictions that make traditional providers run for the hills, compliance requirements that change faster than you can keep up with, and tax implications that would make a CPA’s head spin. Most mainstream payroll companies like ADP or Paychex simply won’t work with cannabis businesses, leaving you scrambling for alternatives.
The good news? The cannabis industry has matured enough that specialized software providers have stepped up to fill this gap. These aren’t just regular payroll systems with a cannabis sticker slapped on, they’re built from the ground up to handle the unique challenges your business faces every day.
We’ve tested eight of the top cannabis payroll solutions available right now, putting them through their paces with real businesses ranging from small dispensaries to multi-state operations. Our top pick is Hybrid Payroll, which combines deep cannabis industry knowledge with reliable banking relationships and comprehensive HR features that go way beyond basic payroll processing.
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Our Software Testing and Review Process
We didn’t just read marketing materials and call it a day. Our testing process involved working with actual cannabis businesses to evaluate each platform across six critical areas that matter most to your bottom line.
First, we put each system through compliance testing. This meant verifying state-specific tax calculations, checking regulatory reporting accuracy, and making sure each platform could handle the complexities of 280E tax implications. We tested with businesses operating in California, Colorado, Washington, and other cannabis-legal states to see how well each system adapted to different regulatory environments.
Banking integration testing was equally important. We evaluated ACH processing reliability, direct deposit functionality, and how well each provider maintained relationships with cannabis-friendly financial institutions. This is where many solutions fall short—they promise the world but can’t deliver when it comes to actually getting your employees paid on time.
User experience evaluation covered everything from initial setup to daily operations. We timed how long it took to get systems running, measured the learning curve for new users, and tested customer support responsiveness during critical payroll periods. Security standards verification included checking encryption protocols, data protection measures, and audit trail capabilities that you’ll need for compliance documentation.
We tested scalability, too, by collaborating with businesses that employ anywhere from 5 to 500 people, to see how well each system grows with your operation.
1. Hybrid Payroll: Best Overall Cannabis Payroll Software
Hybrid Payroll takes the top spot because they’ve built their entire platform around the realities of cannabis business operations. While other providers treat cannabis as an afterthought, Hybrid Payroll has made it their specialty since 2014, developing deep expertise in the banking relationships and compliance requirements that make or break cannabis payroll operations.
Their all-encompassing way of doing business sets them apart. You’re not merely receiving payroll processing when you sign up with them, you’re receiving an entire HR platform that includes benefits administration, time tracking, talent management, and the sort of detailed reporting that keeps auditors smiling. And if you need help, their customer service is available 24/7 and is well-versed in the cannabis business, so you’re not explaining your industry to someone who’s reading from a script.
Key Features:
- Cannabis-specific compliance automation for all legal states
- Established relationships with multiple cannabis-friendly banks
- Comprehensive HR suite including benefits and time tracking
- Real-time reporting with cannabis-specific metrics
- Mobile app for employee self-service and manager approvals
- White-glove implementation with dedicated specialists
The banking relationships are particularly impressive. Hybrid Payroll has cultivated partnerships with financial institutions that actually want to work with cannabis businesses, which means your direct deposits process reliably and your employees get paid on time. They handle ACH processing, tax deposits, and even offer cash management solutions for businesses still dealing with cash-heavy operations.
Cannabis operations can now have their very own compliance automation. It automatically updates tax tables when states change their cannabis tax structures; it handles multi-state compliance for businesses operating across state lines; and it maintains the detailed audit trails that regulatory agencies expect to see.
Pricing is transparent and scales with your business size, starting around $45 per employee per month for their full-service package. There are no surprise fees, and they include implementation support that actually gets you up and running instead of leaving you to figure things out on your own.
2. Paragon Payroll: Best for Multi-State Operations
Should your cannabis business extend across several states, Paragon Payroll is worth a hard look. They are well-known for handling complex multicounty and multisubject tax compliance work, and that’s just what a cannabis business needs when managing cultivation in Colorado, processing in California, and retail sales in Nevada.
Paragon really shines with multi-state regulations. They get how different state rules work together. No need to worry about varying tax structures – they handle it all. State reporting requirements? They’ve got you covered. Those weird tax calculations across states? Taken care of. Even if your employees work in multiple states or travel around, Paragon manages it. They’ll figure out the right tax amounts for each jurisdiction. No more headaches with complex compliance issues!
Key Features:
- Advanced multi-state compliance automation
- Integrated accounting system connections
- Detailed regulatory reporting for each state
- Employee travel and multi-location tracking
- Comprehensive audit trail capabilities
Paragon plays nice with all the big accounting systems – a real lifesaver when you’re juggling finances across multiple states. Their reports are fantastic too. You’ll get all those detailed documents that regulators and tax folks love to see.
Need help? Their support team really knows their stuff about cannabis rules in different states. And when laws change (which happens a lot in this industry), they don’t leave you hanging. They update their system right away and give you a heads-up about anything that might affect your business.
Yes, it costs more than solutions designed for just one state – about $60 per employee each month to start. But honestly? It’s worth every penny when you think about all the headaches and potential fines they’re saving you from.
3. Greenshades: Best for Tax Compliance Automation
Greenshades has built their entire platform around tax compliance automation, making them an excellent choice for cannabis businesses that want to minimize their audit risk and ensure they’re always current with changing tax requirements.
Their system automatically updates tax tables whenever states modify their cannabis tax structures, which happens more frequently than you might expect. They handle everything from basic payroll taxes to the complex 280E implications that affect how cannabis businesses can deduct payroll expenses. The platform generates detailed reports that satisfy both state regulatory agencies and federal tax authorities.
Key Features:
- Automated tax filing and compliance updates
- 280E tax implication handling
- Comprehensive regulatory reporting
- Real-time compliance monitoring
- Integration with major accounting platforms
Greenshades’ proactive compliance change approach makes them particularly valuable. Rather than waiting for you to uncover new requirements, their compliance team keeps an eye on regulatory developments. When they see something that requires your attention, they send you a compliance alert, a kind of “not-for-publication until you’ve read it” sort of alert.
They also monitor system changes that should happen because of compliance updates. If they see you’ve done something that appears to be in tension with a new requirement, they’ll send you an alert to help get you back in line.
While Greenshades isn’t exclusively focused on cannabis, their tax compliance expertise translates well to cannabis business needs. Pricing typically starts around $50 per employee per month, with additional fees for advanced compliance features.
4. Evolve HCM: Best Full-Service HR Solution
For larger cannabis operations that need comprehensive HR management beyond basic payroll, Evolve HCM offers a complete human capital management platform designed to handle everything from recruitment to retirement planning.
Evolve HCM excels in handling the needs of the HR department when your company has more than 50 employees and requires advanced tools to do things like manage benefits, keep tabs on performance, and ensure compliance. Evolve’s platform includes an applicant tracking system, onboarding workflows, training management, and the kind of detailed HR analytics that help you make strategic decisions about your workforce.
Key Features:
- Complete HR platform beyond payroll
- Benefits administration and enrollment
- Performance management and review systems
- Applicant tracking and onboarding
- Training and development modules
- Advanced HR analytics and reporting
Their benefits package is a real standout. They handle everything from health insurance to 401(k)s without breaking a sweat. This matters when you’re trying to snag good talent in the competitive cannabis industry. Even with complex benefit structures, they’ve got you covered – saving your HR team from drowning in paperwork.
They don’t just stop at payroll for compliance either. They track all those HR requirements too – equal employment stuff, safety docs, and all that detailed record-keeping bigger cannabis operations need.
Their support team isn’t just tech people. They’re actual HR specialists who get the cannabis industry’s unique challenges. They’ll give you real advice on HR best practices, not just help you click the right buttons.
It’s not the cheapest option out there – starting around $75 per employee each month for the full package. But if you’re running a larger operation with serious HR needs, it’s money well spent.
5. KayaPush: Best for Retail Cannabis Operations
KayaPush is really made for cannabis shops. They’ve built their system to work perfectly with the sales systems and scheduling tools you’re already using in your dispensary. Running retail locations? You should definitely check them out.
What makes them special? They actually get what cannabis retail is all about. Their system talks directly to all the major cannabis sales systems. It automatically grabs your sales data to figure out commissions and bonuses. And their scheduling doesn’t just handle shifts – it tackles all those security and compliance headaches that come with staffing a dispensary.
Key Features:
- Cannabis POS system integrations
- Commission and bonus calculation automation
- Compliance-focused scheduling tools
- Employee performance tracking
- Retail-specific reporting and analytics
Their scheduling features are really impressive. They handle all the tricky stuff that comes with running a cannabis shop – tracking who has security clearance, keeping tabs on employee certifications, and making sure you’ve got enough staff to meet those state regulations.
The reports you get are perfect for dispensary managers. You can see how much each employee is selling, check customer service scores, and track compliance – all the daily stuff you need to keep an eye on. Plus, your team can use the mobile app to check their schedules, ask for time off, or look at their pay info right from their phones.
Need some help? Their support team actually knows the cannabis retail business. They can give you solid advice on running your dispensary better, not just technical help. And they’re always updating their system to work with new POS systems and those state tracking platforms.
Price-wise, it’s pretty reasonable for what you get – starting around $35 per employee each month. For a dispensary, the specialized features and integrations make it worth every penny.
6. Uzio: Emerging Cannabis-Focused Solution
Uzio is one of the new kids on the block for cannabis payroll. They’ve built their system from scratch with fresh tech that really gets what today’s cannabis businesses need. They might not have been around as long as some of the others, but their modern approach and wallet-friendly pricing make them worth a look – especially if you’re running a smaller operation.
Their platform is super user-friendly with automation that actually works. The interface is intuitive enough that you won’t spend weeks figuring it out. What’s really smart is how they’ve connected with banks and credit unions that actually welcome cannabis businesses, so you don’t have to worry about your payments getting held up.
Key Features:
- Modern, intuitive user interface
- Competitive pricing for small businesses
- Cannabis-friendly banking relationships
- Automated compliance updates
- Mobile-first design approach
The mobile experience is particularly strong, with apps that allow both managers and employees to handle most payroll-related tasks from their phones. This is important for cannabis businesses where managers are often on the floor rather than sitting at desks.
Their compliance automation covers the basics well, with automatic tax table updates and regulatory reporting for cannabis-legal states. While not as comprehensive as more established providers, they cover the essential requirements that most cannabis businesses need.
Customer support is responsive and knowledgeable about cannabis industry challenges. As a smaller company, they can often provide more personalized service than larger competitors.
Pricing is competitive, typically starting around $30 per employee per month. The lower cost makes them attractive for smaller operations that need reliable payroll processing without extensive HR features.
7. Greenleaf HR: Boutique Cannabis HR Services
Greenleaf HR takes a different approach, combining payroll software with personalized HR consulting services. If you prefer working with a dedicated team that knows your business personally, their boutique model might be exactly what you need.
Their strength lies in providing strategic HR guidance alongside payroll processing. You’re not just getting software—you’re getting access to HR professionals who understand cannabis industry challenges and can help you develop policies, handle compliance issues, and manage employee relations.
Key Features:
- Personalized HR consulting services
- Dedicated account management
- Strategic HR planning and guidance
- Customized policy development
- Hands-on compliance support
The personalized service approach means you have direct access to HR professionals who understand your specific business situation. They can help with everything from developing employee handbooks to handling complex compliance situations that arise in cannabis operations.
Their payroll platform covers the basics well, with reliable processing and compliance automation for cannabis businesses. While not as feature-rich as larger platforms, it handles the essential requirements effectively.
The consulting services are particularly valuable for smaller cannabis businesses that can’t afford full-time HR staff but need professional guidance on complex HR issues. Their team can help with recruitment strategies, performance management, and compliance planning.
Pricing includes both software and consulting services, typically starting around $55 per employee per month. The investment makes sense if you value personalized service and strategic HR guidance.
8. EPAY Systems: Agriculture Industry Focus
EPAY Systems brings agricultural industry expertise to cannabis payroll, treating cannabis as part of the broader agricultural sector. Their experience with seasonal workers, piece-rate pay, and agricultural compliance requirements translates well to cannabis cultivation operations.
Their platform handles the complex payroll requirements common in agricultural operations, including seasonal worker management, piece-rate calculations, and the detailed record-keeping required for agricultural compliance. This makes them particularly suitable for cannabis cultivation businesses.
Key Features:
- Agricultural industry expertise
- Seasonal worker management
- Piece-rate and performance pay calculations
- Agricultural compliance reporting
- Integration with farming management systems
The seasonal worker management capabilities are strong, handling the complex requirements of hiring temporary workers for harvest seasons and managing the paperwork required for agricultural labor compliance.
Their reporting includes agricultural-specific metrics and compliance documentation that cultivation operations need to maintain. The system can track worker productivity, calculate piece-rate pay, and generate the detailed reports required by agricultural regulatory agencies.
Customer support includes specialists with agricultural industry experience who understand the unique challenges of cannabis cultivation operations. They can provide guidance on best practices for agricultural payroll management.
Pricing is competitive for agricultural operations, typically starting around $40 per employee per month. The specialized agricultural features make them a good fit for cultivation-focused cannabis businesses.
Cannabis Payroll Software Buying Guide
Choosing the right payroll software for your cannabis business requires evaluating several critical factors that don’t apply to traditional businesses. Here’s what you need to consider before making your decision.
Industry Expertise is your first consideration. Does the provider truly understand 280E tax implications and how they affect your payroll deductions? Can they handle multi-state cannabis compliance requirements? Most importantly, do they maintain established relationships with cannabis-friendly banks that will actually process your payroll transactions?
Banking Relationships can make or break your payroll operations. Verify that your potential provider has solid partnerships with financial institutions that accept cannabis clients. Ask about ACH processing reliability, direct deposit success rates, and what backup options exist if their primary banking relationship encounters problems.
Compliance Automation: When you’re dealing with rapidly changing cannabis laws, it’s critical to have systems that not only keep up but also keep track of the tax and regulatory changes affecting your business. Look for systems that update themselves when states change their tax laws, provide all-the-time reporting for the various regulatory obligations that states impose, and maintain rock-solid audit trails for all the documentation necessary to prove that your company is in compliance with the law.
Scalability Planning matters because cannabis businesses often grow quickly. Can the system handle your growth from startup to enterprise level? What are the costs at different employee levels, and how do integration capabilities expand as your business needs become more complex?
Support Quality can save you significant time and stress. Look for 24/7 availability during critical payroll periods, cannabis industry knowledge in the support team, and comprehensive implementation and onboarding support that actually gets you running smoothly.
When you’re prepared to make a purchase, head straight to vendor websites for optimal pricing and support. Stay away from third-party resellers who likely have no clue about the specific demands of the cannabis payroll market. Ask for demo periods during which you can work with actual payroll data and see how well the system performs. Always negotiate; annual contracts often come with better pricing than month-to-month deals.
Final Buying Recommendations
Best Overall: Hybrid Payroll works for cannabis businesses of any size, offering the best combination of features, support, and cannabis industry expertise. Their transparent pricing structure eliminates surprise fees, and their comprehensive platform grows with your business.
Consider timing your implementation carefully. Q4 implementations benefit from year-end payroll setup, but allow 30-60 days for proper implementation. Many businesses find success starting with a smaller employee subset for testing before rolling out company-wide.
Frequently Asked Questions
Why can’t I use regular payroll software like ADP or Paychex for my cannabis business?
Look, most regular payroll companies either flat-out won’t work with cannabis businesses or they just don’t get the unique challenges we face. They’re clueless about 280E tax stuff, they can’t handle all those state-specific cannabis taxes, and they typically don’t have relationships with banks that’ll actually work with cannabis companies. It’s not worth the headache.
How much should I expect to pay for cannabis payroll software?
You’re looking at about $25-75 per employee each month, depending on what features you need and how complex your business is. Don’t forget to factor in those setup fees and what kind of compliance guarantees they offer when you’re crunching the numbers. And remember – going with the cheapest option isn’t always smart when messing up compliance can cost you big in penalties.
Can these systems integrate with my cannabis POS or seed-to-sale tracking?
Absolutely! Most cannabis payroll systems worth their salt connect with the big cannabis POS systems like Treez, Flowhub, and Dutchie, plus those state tracking platforms like Metrc. These connections are super helpful – they can automatically calculate commissions and make sure your payroll numbers match what you’re reporting for sales.
What happens if cannabis laws change in my state?
Good cannabis payroll providers stay on top of regulation changes and update their systems automatically. Many even offer compliance guarantees that protect you if their system messes up. This constant monitoring is exactly why it makes sense to use a specialized cannabis provider instead of generic payroll software that won’t have your back.
