Many businesses in the legal cannabis industry are being dropped by their financial services and payroll processing providers as federal legislation that would ease many restrictions works its way through congress. The Secure and Fair Enforcement (SAFE) Banking Act would ensure that THC plant-touching firms in the states and territories that have legalized cannabis would have access to the normal range of banking and insurance services that every other business enjoys.
While a handful of credit unitions and financial organizations have stepped up to support the cannabis industry on more of a local level, the big, national players are moving to the sidelines. Closely tied to the large financial institutions are the big HR and payroll services companies in the US. ADP, Bamboo HR, Paylocity and Ultimate Software top the list of giants in the HR Software and Services space that began dropping clients from the legal cannabis industry in late 2018, citing Federal restrictions on doing business with entities engaged in the trade of a Schedule 1 Controlled Substance. That list is likely to grow.
Finding the right HR and payroll partner is quickly becoming a critical issue for many legal cannabis operations. Establishing a solid banking partner is the only thing that takes precedence over the HR and payroll platform. Without a solid banking partner and a good human capital management provider, cannabis businesses will struggle to attract and retain quality staff in today’s competitive labor market. Beyond payroll, these businesses must offer a well thought out benefits package.
Here are a few key points to consider when selecting an HR and payroll services platform:
- Established reputation in the cannabis space.
- Established banking relationships with institutions that will service the cannabis industry.
- The flexibility to work with firms that have established a good banking partner on their own.
- Highly responsive customer service.
- The ability to quickly develop feature requests and platform improvements.
An HR and Payroll system is the underpinning for both day-to-day functioning and long-term growth of any cannabis business. We have several software partners that have great reputations and embody the agility and collaborative attitude necessary for the cannabis industry. If you’ve been dropped by your HR or Payroll provider or looking to find a different provider that is a better business fit, browse our alternative solutions or get in touch!