Get answers to common cannabis payroll questions and questions about our cannabis payroll services.
Cannabis Payroll FAQ
Questions about Cannabis Payroll
WHAT IS A CANNABIS-RELATED BUSINESS (CRB)?
A cannabis-related business (CRB) encompasses any business engaged in various activities within the cannabis industry, including cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing, and wholesaling cannabis or cannabis products, as well as ancillary products or accessories.
WHAT BUSINESS LICENSES ARE REQUIRED FOR OPENING A CANNABIS BUSINESS?
Generally, in order to open your own cannabis business, you will need the following licenses: A properly formed business entity establishing your business, a tax identification number through registering with the IRS, a current state business license registration, and lastly, you will need specific permission from the state you are operating in to operate a cannabis business.
WHAT FEATURES SHOULD I LOOK FOR IN CANNABIS PAYROLL SOFTWARE?
Any cannabis payroll software you choose should be tailored to fit the needs of your business. Cannabis payroll software should include:
- Payroll processing
- Tax filings, deposits, issue resolution
- Garnishment processing
- Integration assistance
CAN A CANNABIS PAYROLL SOLUTION HELP ME WITH COMPLIANCE?
It depends on the payroll provider you choose. A payroll company should have a proven track record of helping cannabis companies comply with federal, state, and local employment laws as well as provide additional compliance support for 280-E compliance.
HOW DO I FIND A TRUSTWORTHY PAYROLL PROVIDER FOR THE CANNABIS INDUSTRY?
In order to find a trustworthy payroll provider for the cannabis industry, find a payroll company with a history of cannabis payroll experience and speak with references to ensure it is compliant with tax and banking regulations pertaining to cannabis. Next, make sure your payroll integrates with your cannabis time and labor management solution. By having payroll integrated with your time and labor management solution, the risk of errors made by manual calculations drops significantly. Further, your organization will maintain compliance with the Fair Labor Standards Act (FLSA), ensuring that all hours worked by employees are compensated fairly and correctly.
IS CANNABIS FEDERALLY LEGAL?
Despite 24 states and the District of Columbia (D.C.) permitting the legal use of recreational cannabis, cannabis is still illegal under federal law.
ARE THERE DIFFERENT TYPES OF CANNABIS LEGALIZATION?
Yes, there are four different types of cannabis legalization. Prohibition, decriminalization, medical legalization, and recreational legalization.
AS A CANNABIS DISPENSARY OWNER ADHERING TO MY STATE'S REGULATIONS, DO I HAVE THE SAME FEDERAL INCOME AND EMPLOYMENT TAX FILING OBLIGATIONS AS OTHER BUSINESSES?
Yes. Despite compliance with your state's laws, the federal government considers operating a cannabis dispensary illegal. However, according to the IRS, any source of income - whether legal or illegal - is taxable.
Questions About Our Cannabis Payroll Service
HOW MANY YEARS OF EXPERIENCE DOES EVOLVE HCM HAVE PROCESSING PAYROLL IN THE CANNABIS INDUSTRY?
We have fourteen years of experience bringing high-value cannabis payroll solutions to the Cannabis Industry, servicing hundreds of customers ranging from companies with 100 employees to companies with over 10,000 employees.
HOW CAN YOU ENSURE COMPLIANCE WITH FEDERAL AND STATE PAYROLL REGULATIONS FOR CANNABIS BUSINESSES?
Our cannabis payroll software utilizes updates from thousands of federal, state, and local codes to manage compliance and accurate payroll tax filing across multiple tax types and jurisdictions.
CAN YOU DESCRIBE THE NATURE OF YOUR BANKING RELATIONSHIPS?
Evolve HCM provides tools that allow CRBs to report, identify, and monitor transactions and events that are required to ensure compliance and transparency. Proactively monitoring and maintaining compliance data can enhance a CRB's position with banks, investors, and government agencies.
HOW DO YOU HANDLE THE PROCESS OF TIMELY REMITTANCE OF THIRD-PARTY PAYMENTS SUCH AS CHILD SUPPORT, TAX LEVIES, AND CREDITOR GARNISHMENTS?
Evolve HCM employer compliance and garnishment, as part of our payroll services facilitates the processing of third-party payments, including child support, tax levies, and creditor garnishments. Using the date entered and calculated in the Evolve HCM payroll software, this service automatically disburses payments based on the withheld amounts, ensuring timely delivery to each recipient.
WHAT LEVEL OF RESPONSIVENESS CAN YOU OFFER WHEN I NEED TECHNICAL SUPPORT OR CUSTOMER SERVICE?
At Evolve HCM, we will know before you do if there are any potential disruptions to our software as a service (SaaS) solution through our 24x7 Monitoring Services. Or, if you are in need of support, our support center is available 8:00 a.m. CT to 8:00 p.m. CT, Monday through Friday.
