Processing and Employment Tax
Standard payroll obligations apply in full: withholding, reporting, unemployment tax, new hire reporting and workers' compensation coordination. Banking constraints can complicate funding logistics, so provider selection matters.
- Payroll processing and employment tax filings
- Multi-location and multi-department pay structures
- Tip, bonus and commission handling where applicable
- Workers' compensation classification coordination
Labor Allocation for Inventory Costing
Time capture should tag the function performed, not just the hours worked. Cultivation, harvest, trim, extraction, packaging, dispensing, delivery, security and administration each carry different accounting consequences.
Documentation Standards
Job descriptions, time records and allocation schedules together support the treatment applied. We keep those aligned so the payroll data reconciles to the cost accounting workpapers.
Frequently Asked Questions
- Can payroll costs be included in cost of goods sold?
- Labor directly involved in production activities is generally inventoriable for a producer, subject to documentation. Selling and administrative labor generally is not. The supporting time and role records determine what is defensible.
- Do payroll providers work with cannabis businesses?
- Some providers serve the industry and others decline it. Provider selection should be confirmed before onboarding to avoid mid-year disruption.
- How granular should time tracking be?
- Granular enough to support the allocation you intend to claim — typically by function or department, and by batch where practical in production environments.