Trying to navigate proper payroll techniques for your cannabis business or dispensary? Dependable payroll impacts your employee morale and is a reflection of the financial stability of your organization. When payroll goes wrong, it puts you in the ire of the IRS and DOL, hurts your reputation, and creates a lack of trust with your workers. With the right cannabis payroll provider, it doesn’t have to be so complicated.
If you are currently processing payroll in-house, following are five cannabis payroll mistakes to avoid.
Paying employees and budtenders in cash.
While finding a qualified payroll provider may be a challenge, outsourcing your cannabis payroll will be the best bet to properly administer and keep track of your dispensary’s payroll expenses.
Misclassifying workers.
Misclassification of employees and independent contractors can come with major tax implications and problems for your cannabis business. It is not a workaround to paying workers with cash or avoiding payroll taxes. Make sure that you understand and are properly classifying your staff.
Not working with professionals who understand 280E.
Cannabis regulatory laws are complex and continuously changing. It is crucial to work with a payroll provider and professionals who are up to date with the latest laws and regulations to help keep your business compliant and up-to-date. From payroll and taxes, to insurance and employment law, there are ancillary professionals who build their expertise in the cannabis, CBD, and hemp industry.
Incurring penalties and late fees for employment and payroll taxes.
As a dispensary owner, you are already busy running your business and taking care of other administrative responsibilities. If your plate is too full, payroll tax filing deadlines could easily be missed. Instead, let your payroll provider help keep you on track for making your payments and filing payroll returns on time. Penalties and fees add up quickly, but are an unnecessary expense since they can be easily avoided.
Not automating and streamlining your payroll process.
Integrating timekeeping, onboarding, and other services with your payroll provider can help guarantee there will be no miscommunication throughout the process and minimize human error. When searching for a cannabis payroll company, look for a partner for can offer more than just payroll processing and tax filing. These supplemental services are key to helping your business scale smoothly.
The payroll specialists at Abacus Payroll work with clients with employees all over the country. If you need a recommendation for a lending solution for your business funds or need to pay employees via payroll debit card, you can count on the professionals at Abacus Payroll to guide you in the right direction to be compliant. Contact an Abacus Payroll specialist today to learn more.
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