Best Cannabis Payroll Software for Hemp Farming Operations in 2025

Running a cannabis or hemp operation comes with its own unique set of challenges, and payroll is definitely one of the trickiest parts. Between 280E tax complications, state-by-state compliance requirements, and the banking restrictions that still plague the industry, managing payroll for cannabis businesses isn't something you can handle with just any old software.

The good news? There are specialized payroll solutions built specifically for cannabis operations that understand these complexities. We've spent months testing and evaluating the top cannabis payroll software options available in 2025, looking at everything from compliance features to user experience to customer support quality.

Whether you're running a small hemp farm or managing a multi-state cannabis cultivation operation, this guide will help you find the right payroll solution. We've focused on software that can handle the unique requirements of cannabis businesses while still being practical and user-friendly for day-to-day operations.

How We Evaluated These Cannabis Payroll Solutions

Finding the right payroll software for cannabis operations requires looking at factors that don't matter much in other industries. We developed a comprehensive evaluation framework that focuses on what actually matters for cannabis businesses.

Our primary evaluation criteria included cannabis-specific compliance features, particularly 280E tax handling and multi-state licensing support. We also examined integration capabilities with seed-to-sale tracking systems, since most cannabis operations need their payroll to work seamlessly with their inventory management.

Security was another major factor. Cannabis businesses face unique risks, so we prioritized software with bank-level encryption and robust data protection measures. We also looked at user interface design, because even the most feature-rich software isn't helpful if your team can't figure out how to use it.

We conducted hands-on demos with each platform, interviewed current users in the cannabis industry, and analyzed customer reviews from verified cannabis business owners. We also verified compliance claims by consulting with cannabis industry attorneys and accountants who specialize in 280E tax issues.

Cannabis Payroll Software Quick Reference Guide

1. Hybrid Payroll: The Complete Cannabis Payroll Solution

When it comes to handling payroll in the cannabis industry, Hybrid Payroll truly shines above the rest. It's no wonder they've become the trusted partner for cannabis businesses nationwide. What makes them special? They didn't just adapt a generic system, they built their platform from the ground up with your cannabis business in mind.

This means they actually get it, all those unique hurdles and regulatory hoops you jump through daily. They've walked in your shoes and designed a solution that works in the real world of cannabis operations.

Why Cannabis Businesses Love Hybrid Payroll

Tax Expertise That Saves You Money
Hybrid Payroll gets what others don't, the 280E tax maze. Their system automatically sorts your deductible and non-deductible expenses, saving you countless hours and protecting you from costly mistakes that could trigger audits.

Multi-State? No Problem!
Running shops in different states? Their platform updates tax tables and compliance requirements on the fly as regulations change (and we know how often that happens in cannabis!). You can finally stop stressing about keeping up with each state's ever-changing rules.

Plays Well With Your Existing Tools
No more juggling multiple systems or double-entering data. Hybrid Payroll connects smoothly with the tools you already use (MJ Freeway, BioTrackTHC, Metrc) letting your data flow naturally between systems and keeping errors to a minimum.

Key Features and Capabilities

Tax Headaches? Gone!
Their system tackles both federal and state requirements automatically, including those tricky 280E calculations that give most cannabis accountants nightmares. When audit time comes, you'll have perfectly formatted reports ready for any jurisdiction.

Empower Your Team
Your staff can grab their pay stubs, tax forms, and check their benefits anytime without bugging HR. One less thing for your managers to handle!

Track Labor Costs That Make Sense
Perfect for growing operations! Their time tracking captures exactly where your labor dollars go in real-time, so you'll know which strains are costing you more to produce.

Benefits Made Simple
Health insurance, 401(k)s, and other benefits live right inside the payroll system. No more open enrollment chaos or wrong deduction amounts on paychecks. Everything just works.

Implementation and Support

Cannabis Experts Get You Started Fast
Their setup team actually understands cannabis, no explaining "seed-to-sale" basics! Your transition takes just 2-3 weeks, with specialists moving all your data from old systems without the usual migration headaches.

Training That Makes Sense
Forget generic payroll tutorials. Their training uses real cannabis scenarios—like handling budtender tips or allocating trim team hours, so your team learns what actually matters in your business.

Help When You Actually Need It
Miss a tax deadline? Facing a surprise audit? Their 24/7 support team has cannabis specialists on standby. No more explaining your business to confused support reps who've never heard of 280E or plant-touching employees.

2. EPAY Systems: Agriculture-Focused Payroll Excellence

Farm Experience That Actually Helps
EPAY brings something different, years of agricultural payroll know-how. Think about it: cannabis cultivation isn't so different from traditional farming, giving EPAY insights that pure cannabis providers often miss.

Perfect for Your Seasonal Workforce
Harvest season bringing in 50 temporary trimmers? Their system handles your year-round staff, seasonal crews, and contractors all in one payroll run, with the right tax treatment for each worker automatically.

HR That Keeps You Compliant
From hiring paperwork to performance reviews, their integrated HR system keeps everything organized. When state inspectors show up unannounced (we've all been there), you'll have every employee document ready in seconds.

Farming Features That Make Sense
Need to pay by the pound for trimming? Track field workers during harvest? These agricultural features fit perfectly with cultivation operations, making labor management actually manageable.

Solid Cannabis Compliance Basics
While not as cannabis-specialized as some, EPAY covers your essential 280E and multi-state compliance needs without overcomplicating things.

3. Greenleaf: Specialized Cannabis Business Solutions

Truly Cannabis-First Design
Unlike adaptations of regular payroll systems, Greenleaf was born for cannabis. They've walked in your shoes and built solutions for problems other providers don't even understand.

Features That Solve Real Cannabis Headaches
Say goodbye to workarounds! Their system handles multi-state compliance reporting, connects with your seed-to-sale tracking, tackles those nasty 280E calculations, and even manages those cash-heavy payrolls we all deal with.

Everything Connected, Everything Simple
Your payroll data flows smoothly to your inventory system, POS, and financial reports—no copying numbers between systems or reconciling mismatched data. One ecosystem that actually works together.

Compliance That Lets You Sleep at Night
When regulations change (again), their system updates automatically. Every transaction leaves an audit trail, and those state-specific reports generate perfectly formatted—exactly how regulators want them.

Users Love Working With People Who "Get It"
The consistent feedback? "Finally, I don't have to explain what a budtender is!" Their support team speaks your language and understands your business from day one.

4. PayNW: Regional Expertise with Cannabis Focus

Deep Local Roots That Matter
Operating in the PNW? PayNW speaks your language. They've built solid relationships with local cannabis businesses and actually understand the unique regulatory landscape of Washington, Oregon, and beyond.

Local Compliance Knowledge You Can Trust
When that confusing new state regulation drops, PayNW likely already has the inside scoop. Their connections with local regulatory agencies mean you're never left interpreting complex rules alone.

The Personal Touch Missing Elsewhere
Tired of being treated like a ticket number? Their dedicated account managers learn your business inside and out. For smaller operations especially, this hands-on approach means getting help from someone who remembers your name.

All the Essentials Without Overwhelming Complexity
They nail the must-haves: 280E handling, multi-state compliance, and connections to your favorite cannabis software. No unnecessary bells and whistles—just what you actually need.

Perfect Fit for Mid-Sized Cannabis Operations
If you're big enough to need serious payroll help but still want personalized service, PayNW hits that sweet spot between the giants and the generalists.

5. Uzio: Modern Payroll for Cannabis Operations

Business Software That Doesn't Feel Like Business Software
Finally, payroll that doesn't look like it's stuck in 1995! Uzio brings that sleek, intuitive feel young cannabis entrepreneurs expect. If your budtenders can navigate Instagram, they'll master this system in minutes.

Your Team Handles Their Own Stuff
Let your employees update their address, check their PTO balance, or download tax forms, all from their phones. Your HR team can stop fielding endless basic questions and focus on what actually matters.

Clean Design That Makes Sense for Cannabis
No more hunting through confusing menus. Their cannabis-specific workflows match how you actually run your business. The dashboard shows exactly what you need, payroll costs, compliance status, upcoming deadlines, without the clutter.

Plays Nice With Your Other Cannabis Tools
Connects smoothly with all the major cannabis platforms, plus they offer APIs for custom connections to your specialized software. As your operation grows, the system grows with you.

Scales From Startup to Multi-State
Whether you're running a single dispensary or expanding across state lines, Uzio adapts. Multi-location support, customizable permissions, and flexible reporting work at any size, and you only pay for what you actually use.

6. Greenshades: Comprehensive Cannabis Compliance

Built for Cannabis Companies That Can't Afford Mistakes
If regulatory nightmares keep you up at night, Greenshades has your back. Their entire system is built around one goal: keeping your cannabis business 100% compliant, no exceptions.

Serious Protection Against Serious Risks
Automatic compliance checks, detailed audit trails, and reports that exceed what regulators require, all working together to create an armor of protection around your business. They even partner with cannabis attorneys and accountants to stay ahead of changing rules.

All the Critical Cannabis Features
From handling those tricky 280E tax calculations to managing multi-state compliance and connecting with your existing cannabis software, they've got all the essentials covered.

Foolproof Processes Keep You Safe
Their system practically holds your hand through compliance tasks. The interface might not win design awards, but it's purposely built to prevent the mistakes that could cost you your license.

Peace of Mind Comes at a Premium
Yes, they cost more than basic payroll. But for operations where a single compliance mistake could spell disaster, their premium pricing buys something priceless: actually being able to sleep at night.

7. Kayapush: Streamlined Cannabis Payroll

No Unnecessary Complexity
Skip the bloated enterprise systems! Kayapush strips away all the features you'll never use, focusing only on what smaller cannabis operations actually need. No learning curve, no confusion, just payroll that works.

Set Up in Minutes, Not Months
Their clean, straightforward interface means you can stop dreading payroll day. Most owners get up and running without lengthy training sessions or expensive implementation consultants.

Just the Cannabis Essentials
They handle the basics that matter: 280E tax calculations, compliance reports regulators actually ask for, and connections to the cannabis software you're already using. Nothing fancy, just what you need to stay compliant.

Pricing That Makes Sense for Startups
No hidden fees, no paying for modules you'll never touch, and no long-term contracts. Their transparent pricing means you can actually predict your payroll costs from month to month, perfect when cash flow is tight.

Perfect Fit for Small Operations
If you're running a single location and need something that just works without breaking the bank, Kayapush hits the sweet spot. You might outgrow them eventually, but until then, why pay for complexity you don't need?

8. Evolve HCM: Full-Service Cannabis HR

Everything Under One Digital Roof
Why juggle multiple systems? Evolve HCM handles your entire HR world, from recruitment to performance reviews to payroll processing, all in one integrated platform designed for cannabis businesses.

Your Data Flows Where It Should
No more copying employee information between systems! When you onboard a new budtender, their details automatically populate your payroll. Update a benefits package? Your payroll deductions adjust instantly.

Cannabis-Specific HR Support
Their specialists actually understand the unique HR challenges in cannabis_, like high turnover, complex compliance, and rapid team growth. Implementation includes consulting to optimize your processes, not just software setup.

From Hiring to Paying to Performance Reviews
Track applicants, manage employee performance, administer benefits, and run payroll, all through a single login. Every HR function connects logically to the next, creating a complete employee management system.

Perfect For Growing Mid-Size Operations
If you're beyond the startup phase and building a professional team, Evolve hits the sweet spot. Smaller operations might find it more than they need, while multi-state giants might want more specialized cannabis features.

9. Paragon Payroll: Established Payroll Excellence

Traditional Expertise You Can Trust
Why gamble with newcomers? Paragon brings decades of payroll mastery to cannabis, with battle-tested systems adapted specifically for our industry. They've processed millions of paychecks before cannabis was even legal.

Rock-Solid Reliability When It Matters
Their established approach means one thing: your payroll runs correctly, every time. No experimental features that break, no "we're still figuring this out" excuses, just consistent execution when payday arrives.

All the Cannabis Essentials Without the Fluff
They've adapted their proven systems to handle your 280E calculations and compliance reporting without unnecessary complications. They focus on getting the basics right rather than chasing trendy features.

Service That Never Lets You Down
Consistent processing, accurate tax handling, and support that actually answers the phone. Their established systems minimize those payroll disasters that can damage employee trust and create compliance nightmares.

Perfect For Operations That Value Stability
If you prefer working with experienced professionals over cannabis-industry newcomers, Paragon delivers. What they might lack in cannabis-specific knowledge, they make up for with decades of payroll expertise.

Cannabis Payroll Compliance Considerations

Let's face it, cannabis payroll is a whole different beast. That 280E tax nightmare? It means you can't write off most business expenses, but payroll costs usually count as “cost of goods sold” and stay deductible. Your software needs to track this correctly, or you're literally throwing money away.

Every state seems to make up their own rules, and they change them constantly. What worked in Colorado last month might get you fined in California today. Good software keeps up with these changes, so you don't have to.

Even with improving banking access, many of us still deal with cash payrolls. Your system needs to handle this reality while keeping everything documented for when the auditors inevitably show up.

Beyond basic payroll reports, you'll need cannabis-specific documentation that connects with your seed-to-sale tracking. When regulators or auditors come knocking (and they will), your system should instantly generate whatever reports they demand.

Bottom line? In this industry, record keeping isn't just good practice, it's survival. Choose software that makes compliance automatic, not another full-time job.

Making Your Cannabis Payroll Software Decision

Don't just jump at the first cannabis payroll option you see. Take a minute to list what you actually need before you start shopping.

Running shops in multiple states? Compliance features should top your list. Companies like Hybrid Payroll are worth the extra cost when they keep you out of regulatory hot water.

Think about tomorrow, not just today. That bargain system might feel painful real quick when you open your third location. Look for software that can grow with you.

Always test drive before buying. What looks slick in a demo might crash and burn with your actual operations. Get your team involved too, they're the ones who'll use it daily.

Remember: good payroll software isn't just an expense, it's protection against the fines, penalties, and headaches that come with doing it wrong.