Cannabis Businesses: How Do Dispensaries Pay Their Employees?

The time is 4:20 and there’s no better time to roll a joint and get lifted! These days it seems like everyone enjoys a little ganja from time to time. Some people even use it to treat debilitating medical conditions!

There’s no doubt about it, the cannabis business in the United States has exploded over the last few years. In 2018, reports show over 200,000 jobs in the American cannabis industry alone!

But, how do dispensaries pay their employees? Since marijuana is illegal on a federal level, traditional banking is not an option.

We put together a guide to explain how cannabis employees get paid. They go from working with green buds to getting green cash in their pockets! Keep reading to learn everything you need to know before hiring cannabis employees or becoming one.

How Not to Pay Cannabis Business Employees

Before we get into the right way to pay dispensary employees, we should first discuss some of the wrong ways that companies pay their employees. The cannabis community looks down on these methods, but they could also land you in legal trouble.

Some companies try to get around all the red-tape of cannabis industry banking They do this by paying their employees in cash or with products. Though it seems like a fair trade, doing this can draw unwanted attention and make the business look bad.

Other dispensaries have started paying employees as independent contractors (or 1099 employees). Employees classified as independent contractors pay their payroll taxes, so the employer doesn’t have to. This way, it’s cheaper for the employer to hire workers, but it’s also more expensive for the employee to work.

How Do Dispensaries Pay Their Employees the Right Way?

Now that we have a couple of examples of what not to do, here are some better options for cannabis payroll management. 

Cannabis employees should receive a paycheck like any other employee working any other job. State and federal payroll taxes should get deducted from the employee’s gross pay and matched by the employer. Then, the employer pays that money to the government or other creditors on behalf of the employee.

Another important factor for employees is consistency. Employees should know that they get paid on a predictable schedule. A company that pays its employees well can expect to attract the best cannabis job-seekers for their open positions.

Consider Looking for a Cannabis HR Business Partner

There are many pitfalls and complications when it comes to banking and paying dispensary employees. Smart business owners work with HR partners to manage their employee hiring/firing and even help run payroll!

Cannabis HR partners can help employees looking to break into the marijuana industry as well as the dispensary owners. Since these companies work with several dispensaries, they have a ton of job openings listed in one convenient place!

We hope you enjoyed reading this article and that we answered the question, “how do dispensaries pay their employees”? If you’re looking for help hiring top-quality cannabis employees, contact us today!

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