Preventing Dispensary Payroll Errors: Top 5 Mistakes to Watch Out For

Streamline your cannabis dispensary's operations

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“The onboarding process for employees is much easier, and having everything live in one centralized location helps us stay compliant.”

— Jason Edgar, Director of Operations at Sessions Cannabis

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"Employees love that they can see their schedules, trade shifts, and access important documents at the push of a button"

— Jazz, owner of Sativa Bliss Cannabis.

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"KayaPush is a lifesaver [because of its] ability to save on costs and have payroll done in a smooth way[Saves $1,500-$2,000 per month on payroll and bookkeeping fees]."

— Jazz, Owner of Sativa Bliss Cannabis

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  • "Support is very easy to contact and helpful when dealing with."
  • "It's clear and easy to use and makes running payroll a breeze. Scheduling is incredibly easy."
  • "Love that it is easy to learn and use with lots of useful tools."

We'll let our buds do the talking

“For cannabis retailers out there that are looking for an easy-to-use solution to manage your scheduling and labor costs, KayaPush has been a great product for us! The features have really helped us save a lot of money and time.”
Richard McLean, Head of Retail at
“KayaPush has helped with staff management by making it really easy from the very beginning when it comes to hiring, onboarding,and then scheduling. It’s foolproof and saves you time and money because it’s so quick.”
Monica Meiloaica, Co-Owner at
“The KayaPush software is beyond user-friendly. I tell my staff all the time that even if you haven't opened it before, you'll most likely be able to figure it out without having to do any training or research.”
Jessica Martin, Chief Operating Officer at
“KayaPush is a lifesaver because of its ability to save on costs and have payroll done in a smooth way.”
Jazz, Owner at
“The KayaPush software helps me maximize my profits. One of the most important benefits of KayaPush in my dispensary is the ability to view all activities on one screen and see how much we're spending on labor.”
Janet, Administrative Director at

Preventing Dispensary Payroll Errors: Top 5 Mistakes to Watch Out For

Table of contents

Payday is a highlight for most employees, but for cannabis dispensary owners and managers who don’t have much experience running payroll, it can be a stressful process. Keeping up with local labor laws, tracking employee hours, and managing industry-specific compliance can be overwhelming and lead to costly mistakes. The average payroll error costs businesses an average of $291 to fix, which can affect your bottom line. While payroll software can be helpful, understanding common mistakes can help you identify and prevent them. 

Let’s explore the 5 most common payroll mistakes cannabis dispensaries often make and strategies on how to prevent them.

The Basics of Dispensary Payroll Errors

First, we’ll cover the basics of dispensary payroll errors to understand the importance of running accurate, timely, and compliant payroll. Not only does this help you avoid fines but it’ll keep your employees happy too. 

How Common Are Dispensary Payroll Mistakes?

At this time, there is no exact data on how common dispensary payroll mistakes are. However, fluctuating schedules and limited resources typically make it more difficult for dispensaries to handle payroll in-house. Outsourcing payroll is an easy and cost-effective solution to reducing the risk of payroll errors. Run your payroll quickly and accurately in just 10 minutes using KayaPush’s automatic calculations, streamlining your dispensary operations.

Who Is Responsible for Payroll Errors?

Employers are ultimately responsible for payroll errors, which could include dispensary owners, managers, or accountants. Employees rely on their employers to run payroll accurately, so they get the pay that they deserve. Sometimes, mistakes happen and it’s up to the employer to fix them promptly and take steps to ensure it doesn’t happen again. KayaPush’s HR+ provides you with an HR expert at the click of a button, helping you to resolve payroll errors accurately and effortlessly.

What Payroll and Labor Laws Do Employers Have to Follow?

Payroll and labor laws must be followed at the federal level, and the state, provincial, or territorial level. On the federal level, all employers must follow the Fair Labor Standards Act (FLSA) in the U.S. and the federal labor standards in Canada. Beyond the federal laws, it’s important to check official government websites for the most up-to-date and accurate local laws. Compliance is made easy with KayaPush’s HR+ – create customizable handbooks that are compliant with every state without the hassle. 

The 5 Most Common Dispensary Payroll Mistakes to Watch Out For

1. Inaccurate Time Tracking

Human error and missed clock-ins and clock-outs can lead to inaccuracies in time tracking. This not only affects the employee’s paycheck but it can also impact your bottom line. Overpayments and underpayments can be frustrating for both you and your employee, potentially causing legal issues. Avoid inaccurate time tracking and buddy punching by using software like KayaPush which offers facial recognition and geo-location tracking. While time tracking software can help, it’s important that managers still review the data to ensure there are no discrepancies. 

2. Failing to Comply With Updated Laws

In a highly regulated industry like cannabis, laws are always evolving. Staying up to date on both industry-specific laws and general labor laws can help keep you out of trouble. Non-compliance with laws and regulations can lead to costly fines, or even worse – lawsuits. Check official government websites regularly and consult legal or HR experts if you’re ever unsure. For on-demand professional HR advice, KayaPush’s HR+ connects you to an HR expert, so you can stay compliant with confidence.

3. Classifying Employees in Error

When onboarding your employees, their classification as an employee or independent contractor can make a difference. The main difference is that payroll taxes must be deducted for employees, whereas independent contractors are responsible for their own taxes and benefits. Misclassifying employees can lead to many problems, including tax errors, underpayment, and unpaid overtime. With fully electronic forms, KayaPush’s onboarding solution stores this information directly in employees’ virtual files – reducing, or even eliminating, the risk of misclassification. 

4. Missing Tax Filing Deadlines

Missing tax filing deadlines can come with serious consequences. When businesses fail to remit payroll taxes on time, they incur penalties and interest charges. Beyond those costs, repeatedly missing deadlines could trigger audits and even more severe penalties from tax authorities. Tax compliance is essential for building and maintaining trust with not only employees but also investors and stakeholders. Never worry about another missed tax remittance again with KayaPush’s automated payroll software

5. Inadequate Recordkeeping

Proper recordkeeping is a large part of running payroll. These records ensure accurate employee compensation, tax reporting, and labor law compliance. Poor recordkeeping can lead to wage calculation errors and potential disputes with employees over pay discrepancies. On top of that, it can be difficult to provide the necessary documentation if your business ever faces an audit or legal investigation. KayaPush makes recordkeeping effortlessly simple by storing files electronically – say goodbye to that dusty filing cabinet in your office.

Elevate Your Dispensary With KayaPush’s Automated Payroll Software

Payroll for cannabis dispensaries can be a complex task that carries potential legal risks. With ever-changing labor laws and tax regulations, managing payroll in-house can be overwhelming. That’s where KayaPush comes in. Our automated people management software handles everything from time tracking and payroll to compliance and taxes. Book a demo today to experience strain free HR with KayaPush.

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Preventing Dispensary Payroll Errors: Top 5 Mistakes to Watch Out For

WHAT YOU'LL LEARN

Why You Need

KayaPush

  • Manage payroll and HR effortlessly
  • Get better efficiency with automated scheduling
  • Ensure compliance and minimize risks

Preventing Dispensary Payroll Errors: Top 5 Mistakes to Watch Out For

Streamline your cannabis dispensary's operations

12 hrs+

Time savings per week

3%

Savings on labor costs

10 min

One-click payroll processing

Trusted by

Hire, Onboard, and Retain

  • Job posting
  • Applicant tracking system
  • Paperless onboarding

Schedule Faster

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  • Paperless onboarding

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  • Run payroll at your dispensary in 10 minutes
  • Say goodbye to manual payroll calculations
  • T4 and ROE support

Track Performance

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  • Analyze employee turnover ratios across locations
  • Track employees' clock times, sick days, and more

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  • View dashboards and key metrics at the click of a button
  • Easy access to real-time labor vs sales reports
  • Integrated with point-of-sale systems to provide timely labor and sales reports

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Meet KayaPush, your new best bud!

  • "Support is very easy to contact and helpful when dealing with."
  • "It's clear and easy to use and makes running payroll a breeze. Scheduling is incredibly easy."
  • "Love that it is easy to learn and use with lots of useful tools."

Preventing Dispensary Payroll Errors: Top 5 Mistakes to Watch Out For

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We'll let our buds do the talking

“For cannabis retailers out there that are looking for an easy-to-use solution to manage your scheduling and labor costs, KayaPush has been a great product for us! The features have really helped us save a lot of money and time.”
Richard McLean, Head of Retail at
“KayaPush has helped with staff management by making it really easy from the very beginning when it comes to hiring, onboarding,and then scheduling. It’s foolproof and saves you time and money because it’s so quick.”
Monica Meiloaica, Co-Owner at
“The KayaPush software is beyond user-friendly. I tell my staff all the time that even if you haven't opened it before, you'll most likely be able to figure it out without having to do any training or research.”
Jessica Martin, Chief Operating Officer at
“KayaPush is a lifesaver because of its ability to save on costs and have payroll done in a smooth way.”
Jazz, Owner at
“The KayaPush software helps me maximize my profits. One of the most important benefits of KayaPush in my dispensary is the ability to view all activities on one screen and see how much we're spending on labor.”
Janet, Administrative Director at

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