How taking payroll in-house helps cannabis businesses optimize their operations.
Managing payroll is a crucial aspect of any business with employees. However, if your company operates within the cannabis industry, the process can be particularly challenging.
In recent years, many large-scale payroll providers have withdrawn their support for direct deposit and tax payment services to cannabis companies, leaving you wondering what steps to take next. However, some of the payroll challenges for your cannabis business can be addressed by implementing an in-house payroll system that provides significant control over your payroll processes and systems.
This blog will explore the numerous benefits of using in-house payroll for your cannabis business.
Ready to learn more about Greenshades’ in-house payroll solution? Schedule a demo now to see how we can elevate your cannabis business operations.
What is in-house payroll management?
When it comes to payroll management, you have two options: in-house or outsourced. In-house payroll management means that your team takes care of all payroll matters, giving you full internal control. Your software can be tailored to your unique in-house processes, and your team manages the payroll funds, information, and processes.
On the other hand, outsourced payroll involves sending some or all of your payroll information to a third-party provider to handle on your behalf. With this option, your team has limited control over the software and processes.
3 Benefits of In-House Payroll for Cannabis Companies
Executing payroll internally affords your team the control necessary to traverse the distinctive legal landscape and regulations inherent to the cannabis industry. The paramount benefit of in-house payroll is the capacity to manage and tailor payroll procedures to align with your company's specific needs.
Freedom with banking
One of the most crucial benefits of in-house payroll is the liberty it provides businesses in managing direct deposits. This is of paramount importance in the cannabis industry, where certain banks remain apprehensive about associating with cannabis businesses due to the federal prohibition of the substance. Through in-house payroll, businesses have the flexibility to select and manage their banking relationships with direct deposits, circumventing potential roadblocks and ensuring smoother financial operations.
Increased control over sensitive data
Opting for in-house payroll presents an opportunity for greater data protection and decreased fraud risk, given that control over critical company payroll data is exclusively with your internal team. This includes sensitive information relating to both employees and the business. Your team is solely responsible for implementing and maintaining security measures, ensuring the data remains well-protected. This level of control and security may not always be guaranteed when payroll tasks are outsourced.
Optimizing expenditure and cash flow management
In-house payroll might prove to be a more economical and efficient choice for your business. Despite the initial investment required for relevant software, the long-term savings of conducting payroll internally can be significant. Additionally, in-house payroll empowers businesses to hold onto their funds throughout the entire payroll process, no prefunding for payroll and tax liabilities. This is in contrast to outsourced payroll services, which often require prepayment with each payroll run. In summary, handling payroll internally grants cannabis enterprises the control, security, and fiscal efficiency necessary to tackle the industry's distinct challenges.
Greenshades In-House Payroll Supports Cannabis Businesses
As a cannabis company, you need an in-house payroll, HR, and tax partner that can provide specialized support and ensure compliance with industry-specific regulations. Greenshades offers just that, giving you control over your operations, cash flow, and data while streamlining your payroll processes.
Here are some of the ways we can help:
- Optimize Payroll Processing: Our smart payroll wizard automates federal, state, and local payroll tax calculations, so you can process payroll quickly and easily. You can also configure payroll codes, benefit codes, and fields to track additional detailed information.
- Manage All Levels of Compliance: Our system is built with compliance in mind, so you can automatically adhere to overtime rules, minimum wage requirements, and other FLSA guidelines. We also support 280e reporting requirements with custom fields and cost reporting.
- Simplify Banking: Many banks are reluctant to work with the cannabis industry, but with Greenshades, you can choose any bank for your direct deposit system, without limitations.
- Handle Union Contracts: If your company has union contracts, our system can handle unlimited earning codes, pay schedules, and other requirements, making compliance easier.
- Support for Multi-State: We understand that compliance standards vary across states, which is why we offer multi-state support, ensuring that your company remains compliant no matter where it operates.
Tips for Managing Payroll In-House for Cannabis Companies
Since every cannabis company is different, it's vital to choose an in-house payroll provider that meets your specific needs. You should understand how the provider can support your business structure, employee types, compliance needs, and more.
To select an in-house payroll provider for your cannabis company, you should consider several factors:
- Who will handle the payroll processes on your team?
- What is the cost of the software?
- Which features does the software support to meet your business's requirements?
- How will your team train and implement the software?
By evaluating these factors, you can choose an in-house payroll provider that is well-suited to your company's needs, enabling you to manage your payroll with greater effectiveness and efficiency.
Partnering with Greenshades means having an expert in-house payroll, HR, and tax provider that can cater to your unique needs as a cannabis company. Schedule a demo today to see how Greenshades can help your business succeed.