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Cannabis Businesses: Payroll Outsourcing Cost vs. In-House Hire (2026)
Payroll outsourcing for a cannabis business costs $45 per employee per month, all-inclusive, against an in-house payroll clerk at the $58,260 BLS national median before benefits and taxes. Live in 3 to 5 business days, with 280E tax code payroll deductions and cash payroll documentation configured at setup.
What the outsourced price includes for a cannabis business
Processing on your schedule, federal and state deposits and filings in every state with an employee, new hire reporting, direct deposit, garnishment processing, W-2s and 1099s, year-end close, and the cannabis business configuration for 280E tax code payroll deductions, cash payroll documentation, state cannabis board reporting and banking restrictions. Corrections caused by the provider are the provider's cost, including amended returns. There is no per-run fee, no per-state fee and no year-end fee.
What the in-house price includes, honestly
A payroll and timekeeping clerk at the BLS OEWS May 2025 national median of $58,260, about $75,738 loaded, plus software, plus the cost of the errors one person makes alone. A state-compliant marijuana dispensary has the same income and employment tax filing obligations as any other business. The IRS states that illegal businesses have no exemption from their employment tax obligations, and businesses in the industry face the same late filing, late payment and accuracy penalties as any other taxpayer.
Break-even for cannabis businesses
At 50 employees outsourcing is $27,000 a year; at 100 it is $54,000. Both sit under the loaded clerk at about $75,738. Below about 20 employees the realistic comparison is with software rather than a hire, where the case rests on 280E tax code payroll deductions rather than price.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- A state-compliant marijuana dispensary has the same income and employment tax filing obligations as any other business. The IRS states that illegal businesses have no exemption from their employment tax obligations, and businesses in the industry face the same late filing, late payment and accuracy penalties as any other taxpayer. [IRS Cannabis industry frequently asked questions]
Read the full guide to how much payroll outsourcing costs, and the rest of the cannabis business payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is included in the outsourced payroll price for a cannabis business?
Processing, all federal and state filings, new hire reporting, direct deposit, garnishments, W-2s and 1099s, year-end close and the cannabis business pay code setup. No per-run, per-state or year-end fees.
What does a payroll clerk cost a cannabis business in-house?
$58,260 a year at the BLS OEWS May 2025 national median, about $75,738 with benefits and employer taxes, before software.
What does a payroll error cost a cannabis business?
A state-compliant marijuana dispensary has the same income and employment tax filing obligations as any other business. The IRS states that illegal businesses have no exemption from their employment tax obligations, and businesses in the industry face the same late filing, late payment and accuracy penalties as any other taxpayer.
What does managed payroll cost for a cannabis business?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. 280E tax code payroll deductions, cash payroll documentation and state cannabis board reporting are configured at setup, not billed as add-ons.
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 $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. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
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