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Run the Payroll Fee Auditor →Blog · Payroll Management · Cannabis
Cannabis Businesses: Managed Payroll for Mid-Size Businesses (25-100 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for cannabis businesses, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Cannabis Businesses
| Cannabis Businesses Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| Single dispensary | $250-$450/mo | Save $58K-$93K/yr |
| 2-5 location operator | $625-$2,250/mo | Save $50K-$80K/yr |
| Vertically integrated | $1,250-$4,500/mo | Save $30K+/yr |
The comparison is against an in-house hire at $60,000-$95,000 fully loaded to $62K-$98K per year.
Under 25 Employees: The Clearest ROI
For cannabis businesses under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $60,000-$95,000 fully loaded -- compared to $625-$1,125/month for managed payroll. The savings pay for a year of managed payroll in the first 2-3 months.
25-75 Employees: Complexity Drives the Case
In the 25-75 employee range, cannabis businesses are dealing with more 280E tax code payroll deductions, cash payroll documentation, state cannabis board reporting, banking restrictions. An in-house generalist is less likely to have the depth needed in these areas. Managed payroll provides specialist coverage that reduces exposure.
75-200 Employees: Hybrid Approaches Emerge
At 75+ employees, cannabis businesses often consider a hybrid approach: an HR generalist handles employee relations and benefits while a managed payroll provider handles the compliance-heavy payroll function. This keeps an internal HR presence while outsourcing the most technically complex piece.
How to Get a Quote for Your Cannabis Businesses
BEG quotes managed payroll based on your actual headcount and pay frequency. For most cannabis businesses, the first discovery call includes a custom cost comparison against your current setup.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
How do you handle 280E payroll cost allocation?
We work with your CPA to allocate payroll costs between COGS (cultivation, production, direct handling) and non-COGS (retail, admin, marketing) to capture the maximum allowable deduction under Section 280E.
Can you handle cash payroll for dispensary employees?
We process payroll calculations and tax withholding digitally regardless of how employees are ultimately paid, and produce detailed payment records and tax documentation for audit readiness.
How do you handle state cannabis board payroll reporting?
We maintain the required records and produce reports in the format required by your state's cannabis control board upon request.
What does BEG charge for cannabis business payroll?
Cannabis payroll runs at $25-$45 per employee per month, including 280E-aware payroll allocation support and state licensing recordkeeping. For a single dispensary with 15 employees, that is $375-$675 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Cannabis Businesses. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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