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Regardless of how many employees you have on board, managing payroll for your team can be a very demanding task. Given that there are multiple potential issues that may halt your payroll processes, it’s extremely important to develop effective tactics in this area.
You can address the specific challenges of cannabis payroll management by partnering with one of the so-called weed payroll providers. Facilitating your payroll procedures can be especially beneficial for your business as it allows you to focus on other pursuits. Read on to find out what the most common payroll issues are and how to successfully overcome them.
While the cannabis industry is growing at breakneck speed, cannabis remains illegal under federal law. This creates a huge obstacle for cannabis business owners, which can affect your company negatively in many ways.
Payroll processing is one of the aspects of your business that it can have an impact on. Here’s a rundown of some of the most common payroll issues you may experience. You’ll also gain a better insight into how you could effectively tackle these problems.
There are very few banks willing to accommodate companies in the cannabis industry due to federal regulations and the stigma that’s still attached to it. The fact that banks won’t work with cannabis operators is the number one underlying issue that gives rise to all the others. If you can’t open a bank account and get ongoing banking support, goals like legal compliance, timely tax reporting, and streamlined payroll processing will remain out of reach.
Thankfully, reliable providers of cannabis financial services have identified the operators’ need for tailored banking assistance. These services are now more readily available than ever, so you can find a dependable partner to manage your payroll procedures.
Employee compensation is subject to payroll tax payments. Employer payroll taxes are also collected by the government. Also, governments at both the state and local levels could impose other payroll charges.
The absence of banking services is the main barrier to effective tax reporting. Because operators struggle to get a checking account, they have to pay taxes in cash. This creates a significant disadvantage as the IRS lacks the resources to process a large number of such payments fast.
Tax reporting also requires a company to have precise, comprehensive records. Doing this on your own uses up your time and resources. Keeping up with all the data and making sure the records are immaculate is rather complex and errors are likely to occur. As a result, you may even fail to meet legal compliance and get in legal trouble.
Some cannabis operators decide to misclassify their employees on purpose. Instead of defining them as employees, they legally label them independent contractors. This clears them of the responsibility to deduct payroll taxes. While they may think they’ve found a handy loophole, this may actually result in hefty fines.
To access reliable, streamlined payroll services specifically adjusted to suit the needs of cannabis operators, look no further than Green Leaf Business Solutions. By outsourcing your payroll management to us, you’ll be able to direct your time and resources elsewhere. Our payroll suite contains a set of practical features tailored to the requirements of a cannabis business. It includes services like rapid payroll processing, stringent compliance, and accurate reporting. Reap the benefits of our tried-and-tested payroll procedures and the reliable software we use. Leave the intricacies of employee classification, precise bonus and benefit calculation, and other HR concerns to us. We’re waiting for your call!