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Payroll and HR for the cannabis industry

The cannabis industry has grown fast—and so have the challenges that come with it. From managing high-turnover teams to navigating strict state regulations and limited banking access, we simplify payroll, HR, and compliance so you can stay focused on your people, your product, and growing your business the right way.

Fill out the form below for a quote, demo or more information and a member of our team will be in touch.
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Cannabis Payroll and HR Software Solutions

Running a cannabis business means navigating more than just cultivation, production, or retail operations. Between evolving regulations, high turnover, cash-flow challenges, and limited banking options, staying compliant and managing your workforce efficiently can quickly become overwhelming.

Our payroll and HR solutions are built with the cannabis industry in mind. From mobile time tracking and automated wage calculations to 280E-friendly labor tracking, employee onboarding, and banking relationships, our tools help you streamline operations, stay compliant, and keep your team focused on growth—not red tape.

 

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Benefits of Payroll and HR Software Geared for Cannabis Businesses

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Managing tipped and non-tipped employees

Tracking reported tips, managing tip pooling arrangements, and calculating FICA tip credits can quickly become overwhelming. Staying compliant with tip-related regulations and reporting is complex, and a single mistake can lead to penalties or audits.

 

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Handling multi-roles and various pay rates

In many restaurants, employees work multiple roles—sometimes even across different locations—with different pay rates for each. Calculating blended overtime and ensuring accurate pay each shift is tedious, error-prone, and time-consuming.

 

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Staying compliant with evolving labor laws

Federal and state labor laws are constantly changing. From Maine’s Earned Paid Leave and Paid Family and Medical Leave Program to minimum wage updates and employee classification rules, staying compliant takes time, attention, and up-to-date knowledge.

 

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Employee turnover, hiring, and onboarding

With high turnover and seasonal staffing needs, you're constantly bringing on new employees. Without an efficient process in place, sourcing candidates, hiring, and onboarding becomes a paperwork headache—slowing down operations and increasing the risk of errors.

 

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Reduced compliance risk

Navigating evolving cannabis regulations, managing 280E reporting, and staying compliant with local labor laws can feel like a full-time job. Our platform automates wage calculations, keeps records audit-ready, and helps ensure your business stays in good standing.

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Tailored payroll services

Many providers shy away from the cannabis space. We don’t. Our tools are designed for cannabis businesses, including options for handling payroll without traditional banking, supporting multi-entity operations, and managing industry-specific compliance with confidence.

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Increased efficiency

Whether you operate a grow facility, dispensary, or lab, manual payroll and HR processes slow you down. From mobile time tracking and job-based labor allocation to automated tax filings, we streamline your workflows so you can focus on your products—not paperwork.

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Hiring and onboarding

High turnover and rapid scaling are the norm in cannabis. Our hiring tools help you post jobs, track applicants, rate candidates and onboard new hires digitally—so employees are compliant and job-ready before their first day, and you spend less time chasing paperwork.

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Key Payroll and HR Features of Our Software

Overtime & Variable Pay Rates

Cannabis employees often wear many hats—working across cultivation, manufacturing, and retail. Our system handles blended overtime, shift differentials, and role-based pay across departments or locations, ensuring accurate, audit-ready paychecks every time.

General Ledger Integration

We build custom general ledger reports tailored to your accounting platform (like QuickBooks), making it easier to allocate payroll expenses—especially important when tracking deductible COGS labor under Section 280E.

Workers' Comp Administration

Cannabis businesses face unique risk exposures. We simplify premium calculations and classification codes by tracking actual payroll in real time. Pay-as-you-go billing helps maintain cash flow and avoid end-of-year surprises.

Mobile Time Tracking with Geofencing

Manage schedules and hours for teams across retail, cultivation, and lab operations. Employees can clock in via phone with GPS tracking, check shifts, and request time off, while managers automate approvals and monitor coverage.

Applicant Tracking & Onboarding

High turnover is common in cannabis. Streamline hiring with digital job postings, applicant tracking, and paperless onboarding. New hires can complete all required forms—state IDs, licenses, tax forms—from their phone before day one.

Custom Software Integrations

We can build integrations with your existing systems to eliminate manual entry and reduce errors. Custom integrations improve workflow and ensure your data stays in sync across systems.

HR Consulting Support

Cannabis compliance is tricky—and ever-changing. Our HR consultants can help you navigate employee classifications, wage and hour laws, handbook updates, disciplinary procedures, and more so you can stay protected.

Certification & License Tracking

Track employee certifications, state-required licenses, and role-based credentials—whether it's METRC training, state-issued agent cards, or food handling certifications for edibles. Set automatic alerts for upcoming expirations so you stay compliant and avoid costly violations or operational delays.

Cost of Goods Sold & 280E Compliance

Because Section 280E limits which expenses cannabis businesses can deduct, it’s crucial to track labor tied directly to cost of goods sold (COGS). We allocate wages by department, job role, or task—ensuring labor costs are properly categorized and audit-ready.

Custom Reporting

Need payroll reports by license type, location, or job role? Our custom reports support labor allocation, overtime analysis, compliance tracking, and more—giving you the cannabis-specific data you need to make smart decisions and stay audit-ready.

Financial Wellness for Employees

Support your team’s well-being with built-in financial tools like early access to wages (via ZayZoon) and financial coaching or low-interest loans (via FinFit)—accessible right from the isolved People Cloud app.

Compliance & Security

From staying compliant with labor laws to navigating banking restrictions, our services are designed for the unique challenges of cannabis payroll. We help manage multi-state compliance, automate tax filings, and support secure employee recordkeeping.

Empowered Employees

Improve the employee experience by providing 24/7 access to self-service accounts, allowing employees to manage their benefits, access payroll information, change direct deposits, and other HR tasks, and more from any device.

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Feeling the Burnout from Payroll & Compliance?

Let’s roll out a simpler way to manage your cannabis team.

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Addressing the Challenges of Cannabis Payroll and HR

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Regulatory Complexities

From 280E tax limitations to constantly shifting state-specific employment laws such as Maine's Retirement Program (MERIT) or Paid Family and Medical Leave, staying compliant in the cannabis industry is anything but straightforward. Our team of HR experts help you stay ahead of legal changes, ensure accurate employee classification, and maintain clean records for audits—with compliance-first payroll and HR tools built for cannabis businesses.

Cannabis Payroll & HR

Banking & Financial Restrictions

Many cannabis businesses face banking limitations that make traditional payroll and tax processing a headache. We work with cannabis-friendly banking partners and support compliant payroll processing—so your employees get paid on time and your taxes are filed without friction, even without a conventional banking setup.

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Workforce Instability

The cannabis industry sees frequent hiring, seasonal fluctuations, and a blend of hourly, salaried, and part-time roles. Our platform streamlines applicant tracking and hiring processes, onboarding, time tracking, and offboarding—all while helping you manage certifications, wage rules, and employee engagement to reduce turnover and create a more stable, productive team.

Regulatory Complexities

From 280E tax limitations to constantly shifting state-specific employment laws such as Maine's Retirement Program (MERIT) or Paid Family and Medical Leave, staying compliant in the cannabis industry is anything but straightforward. Our team of HR experts help you stay ahead of legal changes, ensure accurate employee classification, and maintain clean records for audits—with compliance-first payroll and HR tools built for cannabis businesses.

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Cannabis Payroll & HR

Banking & Financial Restrictions

Many cannabis businesses face banking limitations that make traditional payroll and tax processing a headache. We work with cannabis-friendly banking partners and support compliant payroll processing—so your employees get paid on time and your taxes are filed without friction, even without a conventional banking setup.

Workforce Instability

The cannabis industry sees frequent hiring, seasonal fluctuations, and a blend of hourly, salaried, and part-time roles. Our platform streamlines applicant tracking and hiring processes, onboarding, time tracking, and offboarding—all while helping you manage certifications, wage rules, and employee engagement to reduce turnover and create a more stable, productive team.

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FAQs for Cannabis Payroll & HR

Why won't some banks offer service to my cannabis company?

Even though cannabis is legal at the state level in many places, it remains federally classified as a Schedule I substance. That means most traditional banks are hesitant to work with cannabis-related businesses (CRBs) due to federal regulatory risks and compliance requirements. As a result, CRBs often face roadblocks when it comes to opening accounts, accessing credit, and running payroll.


At Paper Trails, we’ve partnered with cannabis-friendly banking providers to help our clients securely process payroll, manage taxes, and maintain compliance—without jumping through hoops or fearing account shutdowns.

Why is payroll more expensive for cannabis companies?

Payroll can cost more in the cannabis space because of increased compliance demands, limited banking options, and higher perceived risk by many service providers. Some vendors tack on risk premiums or hide fees in “cannabis-specific” packages.

At Paper Trails, we offer transparent pricing and the same level of service we provide all our clients. Our team understands the unique regulations and tax rules cannabis businesses face (like 280E), and we help you stay compliant without overcharging for it.

Why should I consider outsourcing payroll for my cannabis business?

Handling payroll in-house as a CRB is complicated. Between banking limitations, ever-changing employment laws, and IRS rules like 280E, even small errors can lead to fines, audits, or worse. Outsourcing to a cannabis-knowledgeable payroll provider ensures your processes are legally sound, your employees are paid accurately, and your business stays focused on growth.


Our team handles everything from tax filings to labor law compliance to employee self-service—so you don’t have to become an HR expert overnight.

How does 280E impact payroll and HR processes?

Section 280E of the Internal Revenue Code prevents cannabis businesses from deducting typical business expenses (like admin wages or HR costs) from their taxes—unless those costs are tied directly to cost of goods sold (COGS). This means tracking labor by department, role, or task is essential.


With Paper Trails, you can allocate wages accurately using custom labor tracking tools, and generate audit-ready reports to support your 280E strategy. We help you protect your deductions and keep clean records from day one.

Can I pay my employees if I don’t have a traditional bank account?

Absolutely. Not every team member has access to a traditional bank account—and that shouldn’t stop you from paying them securely and on time. We offer paycards through rapid! Pay, a modern solution that gives employees instant access to their wages without needing a bank.

There’s no cost to the employer, and the cards come with helpful features like built-in savings accounts, mobile management through the isolved People Cloud app, and easy activation. It’s a simple, secure way to meet your team where they are—and modernize your payroll process in the process.

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Payroll and HR Giving You a Bad Trip?

We make compliance smooth so you can focus on scaling, not stressing.

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Why Work With Paper Trails?

Running a cannabis business means navigating tight regulations, high turnover, and complex banking and tax challenges—all while trying to grow a compliant and competitive operation. Paper Trails offers more than just payroll software. We provide hands-on support, cannabis-ready tools, and local expertise to help you stay compliant, manage your team with confidence, and keep your business moving forward.

Local Support, Real People

Work with a Maine-based team that understands your needs—no call queues, just real people ready to help.

Deep Industry Experience

We work with cannabis businesses of all types and sizes across Maine and the Northeast—from small local dispensaries to multi-site cultivation and processing operations. We understand the unique challenges you face, from navigating 280E tax restrictions and multi-state compliance to managing high turnover and limited banking access. Whether you’re just starting out or scaling fast, we’ve got the tools and cannabis-specific expertise to support your back office every step of the way.

Hands-On Implementation

From setup to staff training, we’re there every step of the way to ensure a smooth transition and long-term success with your payroll and HR processes.

Regulatory Expertise

Our team stays on top of local, state, and federal mandates, ensuring you're always prepared for audits or legislative changes.

Powered by isolved

We’ve partnered with isolved, one of the most robust and reliable HCM platforms available, to deliver a modern and secure experience.

Paper Trails Team
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What clients are saying about the team at Paper Trails

5-star

The tools that Paper Trails provides to me and my employees improve our HR processes and keeps my team engaged in providing world-class service to our guests.

The Lost Fire

German Lucarelli
The Lost Fire

5-star

The team at Paper Trails keeps my employee experience in line from hire to retire, so I can focus on what my business does best, digging holes and mowing lawns.

 
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Brian Cloutier
Greenscapes of Maine

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Is Your Payroll Situation Less than Perfect?

We’ll stay in the weeds to manage your payroll, Human Resources, and compliance needs.

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207.721.8575

10 Main Street, 2nd Floor Kennebunk, ME 04043

1 Bowdoin Mill Island, Suite 302 Topsham, Maine 04086

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