5 Best Payroll Software for Testing Labs in the CBD Industry
Running a cannabis testing lab comes with its own set of headaches, and payroll shouldn't be one of them. But here's the thing, most traditional payroll companies won't even touch cannabis businesses, leaving lab owners scrambling to find solutions that actually work.
Cannabis testing labs face a perfect storm of challenges: federal banking restrictions that make direct deposits tricky, state-by-state compliance rules that change faster than you can keep up, and the constant need to prove everything you're doing is above board. Add in the complexity of managing both full-time lab technicians and contract workers, and you've got a payroll puzzle that generic software just can't solve.
That's why we've put together this guide to the five best cannabis payroll software providers specifically for testing labs. We've evaluated each one based on their cannabis industry expertise, compliance features, banking partnerships, and real-world performance with businesses just like yours. Whether you're a small startup lab or a multi-state operation, there's a solution here that'll make your payroll headaches disappear.
How We Ranked These Cannabis Payroll Software Providers
We didn't just throw darts at a board to pick these providers. Our ranking system focuses on what actually matters when you're running a cannabis testing lab.
Cannabis Industry Expertise (30%) takes the top spot because generic payroll knowledge doesn't cut it in this industry. We looked for providers who understand the difference between a budtender and a lab technician, who know why cash management matters, and who've actually helped cannabis businesses stay compliant during regulatory changes.
Compliance Features (25%) came in second because one missed filing can shut down your operation. We evaluated automated state reporting, audit trail capabilities, employee classification tracking, and integration with state compliance systems. The best providers don't just process payroll—they help you sleep better at night knowing everything's documented properly.
Banking Integration (20%) matters because what good is payroll software if your employees can't get paid? We tested each provider's partnerships with cannabis-friendly banks, their ACH capabilities, and backup payment methods for when traditional banking gets complicated.
Feature Set (15%) covers the basics that every business needs: employee self-service portals, benefits administration, time tracking integration, and reporting capabilities. We looked for providers that offer comprehensive solutions without making you juggle multiple platforms.
Customer Support (10%) rounds out our criteria because when payroll goes wrong, you need someone who understands your business to fix it fast. We evaluated response times, cannabis industry knowledge among support staff, and the quality of implementation assistance.
Our research included hands-on platform testing, interviews with current users at testing labs, analysis of compliance certifications, and deep dives into each provider's cannabis industry track record. We also factored in pricing transparency and contract flexibility because nobody likes surprise fees or getting locked into bad deals.
5 Best Cannabis Payroll Service Providers
Provider Specialization Pricing Range Key Strengths Best For
Hybrid Payroll Cannabis-focused payroll $8-15/employee/month Full compliance suite, Testing labs needing
banking partnerships comprehensive
compliance
Uzio Cannabis workforce management $6-12/employee/month, Time tracking, Labs with complex
Scheduling integration scheduling needs
Greenshades Multi-industry with cannabis focus 4-10/employee/month, Scalable platform, Growing testing
, tax expertise operations
Kayapush Cannabis operations management $10-18/employee/month. All-in-one platform, Labs wanting
unified
Inventory integration operations system
EPAY Systems Agriculture & cannabis HR $5-8/employee/month Cost-effective, Budget-conscious
Compliance focus smaller labs
1. Hybrid Payroll: Best for Comprehensive Cannabis Compliance
Hybrid Payroll built their entire platform around the cannabis industry's unique challenges, and it shows. They're not trying to be everything to everyone, they're laser-focused on making cannabis payroll work, period. So, let’s explore their cannabis payroll software.
Service Offerings and Specializations
Their cannabis-specific payroll processing goes way beyond just cutting checks. The platform automatically handles state compliance requirements across all legal cannabis states, which means less manual work for you and fewer chances for costly mistakes. They've built partnerships with cannabis-friendly banks that actually want your business, making direct deposits reliable instead of a constant worry.
The automated tax filing system handles multi-state operations seamlessly. If you're testing products from different states or thinking about expanding, this feature alone could save you hours of headaches every month. Their employee classification management helps you stay compliant whether you're dealing with full-time lab technicians, part-time sample processors, or contract quality assurance specialists.
What really sets them apart is their compliance reporting and audit trail maintenance. Every transaction, every change, every approval gets documented automatically. When state inspectors come knocking (and they will), you'll have everything organized and ready to go. They also handle benefits administration, including cannabis industry-specific insurance options that most providers can't even offer.
Strengths and Limitations
Strengths Limitations
Deep cannabis industry expertise and regulatory knowledge Higher pricing compared to general payroll providers
Strong banking partnerships enabling reliable direct deposits Limited integration options outside cannabis industry software
Comprehensive compliance automation reduces manual work It may be overkill for very small testing labs (under 10 employees)
Excellent customer support with cannabis industry specialists Setup can be complex for businesses with simple needs
The pricing reflects the specialized service, you're paying for expertise that could literally keep you in business. Their customer support team includes former cannabis business operators who understand your challenges because they've lived them. When you call with a question about employee classification or state reporting requirements, you're talking to someone who gets it.
2. Uzio: Best for Time Tracking and Scheduling Integration
Uzio takes a different approach by focusing on workforce management first, then building payroll around it. If your testing lab runs multiple shifts, handles varying sample volumes, or struggles with accurate time tracking, this could be your solution.
Service Offerings and Specializations
Their payroll processing comes with built-in time tracking that actually works in lab environments. Workers can use mobile devices, desktop computers, or devoted time clocks to record their arrival at and departure from work. The system computes any overtime earned, manages pay rates that change according to the kind of work being done, and integrates flawlessly with the workers' scheduling system.
You can plan shifts around things like delivery schedules, lab equipment maintenance, and the fluctuating workloads of your lab, using the advanced scheduling and workforce management features in Lawrence.
And if you want to make sure nobody's working near overtime, or if you want to just track productivity in the lab visually, you could integrate the Lawrence system with some laboratory equipment systems.
Their cannabis compliance reporting covers the basics without getting too complex. The self-service portal allows the employees of your organization to see their pay stubs, request time off, and update personal information without needing to involve your HR department. The mobile app is particularly robust, employees can use it to not only see their stubs but also to track time, view schedules, and communicate with managers.
Strengths and Limitations
Strengths Limitations
Excellent time tracking and scheduling capabilities Less specialized cannabis compliance features
Strong mobile app functionality Limited banking partnership options
Good integration with lab management systems Customer support not cannabis-industry specific
Competitive pricing for feature set May require additional compliance tools
You will have to do more compliance work manually or supplement it with more tools if you choose to use this software. Support is pretty good, but they are not experts in the cannabis space. So if you have hard regulatory questions that need answering, expect to have those questions escalated or to need some outside consultation.
3. Greenshades: Best for Scalable Multi-State Operations
Greenshades brings enterprise-level payroll capabilities to the cannabis industry without the enterprise-level complexity. They're particularly strong for testing labs that are growing fast or operating across multiple states.
rvice Offerings and Specializations
Their multi-industry payroll platform includes cannabis-specific capabilities that have been refined over years of serving the industry. The scalable platform grows with your business, whether you're adding new lab locations, expanding into new states, or just hiring more technicians.
Cannabis businesses struggle with multi-state tax requirements, and this service offers help with that and with all the other complexities of tax management and compliance that businesses encounter. They are accustomed to dealing with the ever-changing taxation requirements of the cannabis industry. No matter where you are in the process, these professionals can assist you with your current business needs and provide some clarity.
Connecting to key accounting systems such as QuickBooks and Sage ensures that your financial data moves effortlessly between the two platforms. Our analytics and reporting capabilities, which can be tailored to your specifications, provide visibility into labor costs, compliance, and productivity across all your operations.
Strengths and Limitations
Strengths Limitations
Highly scalable platform Not exclusively cannabis-focused
Strong tax expertise and multi-state capabilities May require more manual compliance work
Good integration ecosystem Less specialized industry support
Competitive pricing for growing businesses Learning curve for advanced features
Greenshades works best for testing labs that are thinking beyond their current size. Their platform can handle everything from a single-location startup to a multi-state operation with hundreds of employees. The pricing scales reasonably as you grow, making it a good long-term choice.
4. Kayapush: Best for Unified Operations Management
Kayapush takes the "all-in-one" approach seriously, combining payroll with inventory management, compliance tracking, and business analytics. If you want to manage your entire testing lab operation from a single platform, this is worth considering.
Service Offerings and Specializations
Their all-in-one cannabis operations platform treats payroll as just one piece of your business puzzle. The integration of payroll and inventory management is direct. This means that labor costs can be tracked all the way down to specific batches, clients, or testing procedures. And that integration, I promise, allows insights that standalone payroll systems just cannot provide.
Compliance tracking spans your entire operation, not just payroll. Employee management and scheduling connect with sample tracking and equipment maintenance schedules. The financial reporting and analytics combine payroll data with revenue, inventory, and operational metrics to give you a complete picture of your business performance.
The system is capable of integration from seed to sale. It means the system can grow with you if you expand from testing into cultivation or manufacturing. The unified approach reduces the complexity of managing multiple software systems and eliminates data synchronization issues.
Strengths and Limitations
Strengths Limitations
Comprehensive operations management Higher cost due to additional features
Strong integration between payroll and other business functions May be complex for payroll-only needs
Good cannabis industry focus Longer implementation timeline
Unified platform reduces software complexity Potential vendor lock-in concerns
Kayapush makes sense for testing labs that want to streamline their entire operation, not just payroll. The integrated approach can provide valuable insights and efficiencies that justify the higher cost and complexity.
However, if you're happy with your current lab management system or only need payroll functionality, you'll be paying for features you don't use. The implementation process is also more involved since you're potentially replacing multiple systems instead of just adding payroll.
5. EPAY Systems: Best for Budget-Conscious Smaller Labs
EPAY Systems focuses on delivering solid payroll fundamentals at prices that won't break the bank. They've built their cannabis capabilities on top of a proven agriculture platform, which gives them relevant experience with cash-heavy, compliance-focused industries.
Service Offerings and Specializations
The payroll processing as well as the work involved in their basic components are all handled in a cost-effective manner. That means when these people do the work of payroll processing, they do it with a mind toward conserving money for the client. So far, so good. And now: Direct deposits (where banking allows), automated payroll calculations, tax filing, and basic compliance reporting are all part and parcel of this service. But let's dig a little deeper.
Basic payroll processing includes all standard features like multiple pay rates, overtime calculations, and deduction management. Their compliance reporting covers essential state requirements without the advanced automation of pricier competitors. Tax filing services handle multi-state operations competently, though you might need to be more hands-on with complex situations.
The self-service portal allows staff to view pay stubs, change personal information, and retrieve tax documents. It is not heavily populated with features, but it does perform basic functions and give staff a "place to go" to get certain things done.
Strengths and Limitations
Strengths Limitations
Affordable pricing structure, Limited advanced features
Good basic functionality Basic customer support
Agriculture industry experience Fewer integration options
Straightforward implementation Manual compliance work required
EPAY Systems works well for smaller testing labs that need reliable payroll without bells and whistles. Their agriculture background means they understand industries that operate differently from typical businesses, and their pricing makes professional payroll accessible for startups and small operations.
The trade-offs are exactly what you'd expect at this price point: fewer features, more manual work, and basic support. But if your payroll needs are straightforward and budget is a primary concern, they deliver solid value.
Choosing the Right Provider: Decision Guide
Choosing the correct payroll provider is not a matter of just features and pricing, it is about finding the solution that fits your particular situation and plans for growth.
Step 1: Assess Your Compliance Needs
Complying with state-specific laws is a must for any business that operates or plans to expand across state lines. For companies operating in multiple states, automating compliance becomes paramount, from the number of states you're in to the variety of different (and sometimes conflicting) laws those states pass.
In short, if you have or are planning to have a multi-state operation, seek out compliance providers that are strong in the insufficiently documented field of "multi-state compliance." You have more than enough documented dangers to diverge from.
Step 2: Determine Integration Requirements
Include an enumeration of your current software systems. Include in your enumeration software systems like accounting platforms, lab management systems, and time tracking tools. Remember to tell which integrations are must-haves and which ones are only nice-to-haves. Think about what new system implementations you're planning for in the future and make sure your payroll provider is able to grow alongside you.
Step 3: Evaluate Your Banking Situation
Evaluate your present banking affiliations and any constraints you experience with direct deposits and ACH transfers. Ascertain the direct deposit functionalities that you require and factor in your cash management necessities if your only available options are conventional banks.
Questions to Ask Potential Providers:
How many cannabis testing labs do you currently serve?
Which states' cannabis regulations are you experienced with?
What banking partners do you work with for our industry?
How do you handle multi-state tax compliance?
What's your average implementation timeline?
Do you provide ongoing compliance updates?
Red Flags and Warning Signs:
Choose a provider with proven cannabis experience, partnerships with cannabis-friendly banks, compliance automation, proper insurance for effective processes, genuine references from real cannabis businesses, and proven regulatory expertise. If you ignore these warnings, you are likely to end up with a provider that causes you lots of problems and that you will find it hard to replace.
Summary and Next Steps
Each provider on this list serves different needs, so your choice depends on what matters most to your testing lab operation.
For Comprehensive Compliance: Hybrid Payroll offers the most complete cannabis-specific compliance features. If regulatory compliance keeps you up at night, their specialized expertise and automated systems provide the best protection.
For Workforce Management: Uzio provides excellent scheduling and time tracking integration. If managing complex schedules and accurate time tracking are your biggest challenges, their workforce-first approach delivers real value.
For Scalability: Greenshades supports growing operations with strong multi-state capabilities. If you're planning expansion or need enterprise-level features without enterprise complexity, they're worth serious consideration.
For Unified Operations: Kayapush integrates payroll with broader business management functions. If you want to manage your entire operation from one platform, their comprehensive approach can provide valuable efficiencies.
For Budget-Conscious Operations: EPAY Systems delivers essential features at competitive pricing. If you need reliable payroll without advanced features, they provide solid value for smaller operations.
Start your evaluation by defining your requirements clearly—list must-have features, compliance needs, and integration requirements. Request demos from 2-3 providers that align with your needs and budget. Check references by contacting current clients in similar testing lab operations. Evaluate implementation complexity, timeline, and support quality before making your final decision.
The essence is concentrating on compliance capabilities and cannabis industry know-how as your number one selection criterion and then judging supplementary features and pricing as the basis of your final choice. Don't let perfect be the enemy of good, for any of these providers will serve you much better than the ridiculous notion of trying to make generic payroll software work in the cannabis industry.
Frequently Asked Questions
Q: Can traditional payroll providers like ADP or Paychex handle cannabis businesses?
A: The federal restrictions and banking obstacles associated with cannabis businesses cause most mainstream service providers to shun them. Even when they do take on cannabis clients, most providers are unfamiliar with the industry reality and business practices. Workarounds and partnerships that cannabis-specific providers have developed largely do away with the need for those clunky old solutions.
Q: How important is cannabis industry experience in a payroll provider?
A: It is essential. Cannabis companies confront compliance prerequisites that are unlike any other industry's, and those in the banking sector have cannabis-specific concerns. If your service provider doesn't understand cannabis, it will leave you to contend with the appearance of your business and the cash it generates, without the support of the cannabis knowledgeable banking sector.
Q: What happens if my payroll provider drops cannabis clients?]
A: There's a genuine danger that comes from picking providers who treat cannabis like a secondary gig. When you're sussing out potential partners, look for ones with an unshakeable commitment to the cannabis industry, not some hazy business model. Dig into their story and ask them about their past; it should be relatively easy for them to outline a proven path to your present day. And if they can't tell you with confidence how they plan to stick around in the future, keep fishing.
Q: How do cannabis payroll systems handle direct deposits with banking restrictions?
A: Providers concentrated on cannabis strike up partnerships with banks and credit unions that embrace the cannabis movement, and these kinds of financial institutions are definitely within reach. (The U.S. has 1,369 credit unions.) These banks and credit unions help cannabis businesses manage their cash flow by offering basic business banking services. These services can include checking accounts and payroll solutions.
