Use Case – Cannabis Company Dropped by Paychex: Overcoming Payroll Challenges with UZIO

Use Case – Cannabis Company Dropped by Paychex: Overcoming Payroll Challenges with UZIO

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1. Introduction

Our client is a highly successful and vertically integrated cannabis business operating multiple retail stores across the Midwest. With full control over their cannabis supply chain, from cultivation to retail, they ensure the highest quality products and an exceptional customer experience. However, their growth trajectory hit a roadblock when their long-time payroll provider, Paychex, unexpectedly informed them in April 2023 that they could no longer serve their needs. This sudden disruption presented our client with significant payroll challenges that needed urgent resolution. This use case highlights how our client overcame these challenges by partnering with UZIO, a specialized payroll and HR provider for the cannabis industry.

2. Challenge: Unexpected Payroll Service Disruption

For years, our client relied on Paychex for their payroll processing needs, trusting them to handle their complex payroll requirements efficiently and accurately. However, in a surprising turn of events, Paychex abruptly notified our client that they could no longer provide services to cannabis businesses. This sudden disruption left our client in a difficult position, with limited time to find an alternative payroll solution.

With payroll being a critical aspect of their business operations, our client needed to identify a new payroll provider swiftly. They faced several challenges in their search, including:

  1. Specialized Expertise: Our client sought a vendor with expertise in serving the unique payroll and compliance needs of the cannabis industry.
  2. Proprietary Technology: They desired a payroll provider that owned their technology platform, ensuring flexibility, customization, and quick responsiveness to their specific requirements.
  3. Seamless Transition: The transition from one payroll provider to another needed to be smooth and efficient to minimize disruptions and potential errors.

3. Solution: UZIO – Empowering Cannabis Businesses

Amidst the time-sensitive situation, our client diligently evaluated various payroll providers in the market. After extensive research and careful consideration, they selected UZIO as their preferred partner. UZIO is renowned for its deep understanding of the cannabis industry, tailored solutions, and proprietary technology platform that meets the unique needs of cannabis businesses.

The partnership with UZIO enabled our client to address their payroll challenges effectively. Here’s how UZIO’s comprehensive payroll and HR solutions provided the perfect fit for their requirements:

1. Specialized Expertise and Industry Compliance

UZIO understands the intricate compliance landscape that surrounds the cannabis industry. They possess specialized knowledge of the complex regulations, tax obligations, and employment laws that cannabis businesses must navigate. By partnering with UZIO, our client gained access to a team of experts well-versed in cannabis-specific compliance, ensuring accurate payroll processing and adherence to all regulatory requirements.

2. Proprietary Technology Platform

UZIO’s proprietary technology platform served as a game-changer for our client. With UZIO’s advanced payroll software, they gained the flexibility and customization options they desired. Unlike vendors that rely on white-labeled solutions, UZIO owns and controls its technology, allowing for quick and seamless customizations to meet our client’s specific payroll needs. This ownership ensured that any changes or updates could be promptly implemented without relying on external parties.

3. Smooth Transition and Implementation

UZIO’s dedicated team understood the urgency of our client’s situation. They worked closely with our client to ensure a smooth transition from Paychex to UZIO’s platform. With their expertise and seamless implementation process, UZIO successfully onboarded our client’s payroll operations onto their system. This included integrating over ten Employer Identification Numbers (EINs) associated with our client’s diverse operations, streamlining the entire payroll process.

4. Results: Streamlined Payroll Operations and Compliance

Since partnering with UZIO, our client has experienced significant improvements in their payroll operations, compliance, and overall efficiency. The results achieved include:

1. Time Savings and Efficiency

By transitioning to UZIO’s advanced payroll platform, our client has saved valuable time and resources. Automating payroll processes and leveraging UZIO’s intuitive workflows have reduced manual tasks, enabling the team to focus on more strategic initiatives. The client estimates saving approximately 10 hours per week previously spent on payroll processing, allowing them to allocate resources to other critical areas of their business.

2. Enhanced Accuracy and Reduced Errors

Payroll errors can be costly and time-consuming to rectify. With UZIO’s precise calculations and robust system, our client has experienced a significant reduction in payroll errors. The automated system accurately calculates wages, deductions, and tax obligations, minimizing the risk of mistakes. As a result, our client has reduced payroll errors by an impressive 50%, improving their overall payroll accuracy and compliance.

3. Compliance with Payroll Regulations

Navigating the intricate web of payroll regulations is particularly challenging for cannabis businesses. UZIO’s expertise in cannabis compliance has proven invaluable for our client. UZIO stays up to date with the evolving legal landscape, ensuring that our client’s payroll operations align with all relevant federal, state, and local regulations. With UZIO’s guidance, our client has achieved increased compliance with payroll regulations, mitigating the risk of penalties and legal complications.

Recommended Reading: Biggest pain point with Payroll and HR software

5. Conclusion: UZIO – A Reliable Partner for Cannabis Payroll

Our client’s experience with UZIO exemplifies the transformative impact of finding the right payroll and HR partner. Despite the unexpected disruption caused by Paychex’s withdrawal of services, our client successfully navigated the challenges and emerged stronger with UZIO’s support.
UZIO’s specialized expertise, proprietary technology platform, and seamless implementation have empowered our client to streamline their payroll operations, enhance compliance, and achieve significant time and cost savings. Their partnership with UZIO has not only resolved their immediate payroll challenges but also positioned them for long-term success in the rapidly evolving cannabis industry.
As a highly satisfied client, our client enthusiastically recommends UZIO’s payroll and HR solutions to other cannabis businesses seeking a reliable and tailored payroll partner. Through UZIO, cannabis businesses can gain the confidence, compliance, and efficiency needed to thrive in an industry marked by constant change and complex regulations.

To know more about UZIO payroll solution for the Cannabis Industry and get in touch with us for an expert-led demo.


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Navigating the Fallout: UZIO’s Support for Cannabis Businesses Amid Paychex’s Service Modifications and Cessation

Navigating the Fallout: UZIO’s Support for Cannabis Businesses Amid Paychex’s Service Modifications and Cessation

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1. Introduction

The recent decision by Paychex and other mainstream payroll providers to modify or cease their services for cannabis businesses has significant implications for the industry. This article explores the implications of Paychex’s actions, what it means for cannabis businesses going forward, the factors leading up to this fallout, steps businesses can take to address the situation, and the lessons to be learned.

2. Implications of Paychex’s Service Modifications and Cessation

Paychex’s modifications and cessation of services have profound implications for cannabis businesses:

  1. Disrupted Payroll and HR Operations:
    The sudden change in service availability can disrupt the smooth functioning of payroll and HR operations for cannabis companies. Managing payroll processing, tax calculations, benefits administration, and compliance without the support of mainstream providers can lead to delays, potential errors, and increased administrative burden.
  2. Increased Compliance and Regulatory Challenges:
    Cannabis businesses already face complex and evolving compliance requirements. The withdrawal of services from mainstream providers adds an additional compliance burden, requiring businesses to navigate the intricacies of tax filings, employment regulations, and other compliance obligations independently.
  3. Limited Access to HR Solutions:
    Mainstream providers often offer a suite of HR solutions beyond payroll, including employee onboarding, time tracking, and benefits management. With the service modifications and cessation, cannabis businesses may lose access to these comprehensive HR solutions, requiring them to find alternative providers or develop in-house solutions.
  4. Reputational Risks and Stigma:
    The actions taken by mainstream providers can perpetuate the stigma associated with the cannabis industry. The limited availability of reputable payroll and HR services may hinder cannabis businesses in attracting top talent, securing financial partnerships, and maintaining a positive brand image.

3. What Does This Mean Going Forward?

The fallout with Paychex serves as a turning point for the cannabis industry, highlighting the need for specialized services tailored to its unique requirements. Going forward, cannabis businesses must seek alternative solutions to manage payroll and HR operations effectively, ensuring compliance, reliability, and scalability.

4. Factors Leading to the Fallout

Several factors have contributed to the fallout between mainstream providers and the cannabis industry:

1. Regulatory Uncertainty

Customer support is an essential consideration when choosing a white label payroll solution provider. When you’re processing payroll, you need to know that you can rely on the provider to support you in case of any issues. A provider with excellent customer support can help you resolve issues quickly and ensure that your payroll is processed accurately and on time.
When evaluating customer support, consider the types of support that are available. Is there a dedicated support team that you can contact by phone or email? Is there an online support center that you can access for self-help resources? Is support available 24/7? Additionally, consider the provider’s reputation for customer support. Are they known for providing excellent support, or do they have a poor reputation in this area?

2. Risk and Compliance Concerns

Compliance with cannabis-specific regulations presents unique challenges. Mainstream providers may have found it difficult to fully meet the compliance needs of the industry due to evolving laws, potential conflicts with federal regulations, and increased scrutiny from financial institutions.

3. Reputational Considerations

Maintaining relationships with cannabis businesses can impact the reputation and risk profile of mainstream providers. Concerns over potential reputational risks and the need to cater to diverse client bases across industries may have influenced their decision to modify or cease services for the cannabis sector.

5. Amending the Situation: What Can Cannabis Businesses Do?

To address the fallout and mitigate its impact, cannabis businesses can take the following steps:

1. Seek Specialized Service Providers

Explore specialized payroll and HR service providers, such as UZIO, that understand the unique needs and compliance requirements of the cannabis industry. Partnering with providers that offer tailored solutions can help businesses regain stability and streamline operations.

2. Prioritize Compliance Expertise

Engage with service providers well-versed in cannabis regulations to ensure compliance at all levels. Stay updated on changing laws and maintain diligent reporting practices to navigate the complex compliance landscape effectively.

3. Embrace Technology and Automation

Leverage technology solutions that automate payroll and HR processes, reducing manual errors and improving efficiency. Implementing integrated systems can streamline data management, payroll calculations, tax reporting, and compliance tracking, allowing cannabis businesses to focus on strategic growth initiatives.

4. Build Strategic Partnerships

Forge partnerships with service providers and industry organizations that specialize in supporting the cannabis sector. Collaborating with experts who understand the unique challenges and compliance requirements of the industry can provide valuable guidance and support.

5. Advocate for Industry Recognition

Cannabis businesses can collectively work towards gaining industry recognition and legitimacy. By actively engaging in advocacy efforts, participating in trade associations, and supporting regulatory initiatives, the industry can foster a positive image and influence policies that facilitate access to essential services.

6. Lessons Learned for the Cannabis Businesses

1. Diversify Service Providers

Relying solely on mainstream providers may expose businesses to vulnerabilities. Building a network of specialized service providers ensures continuity and reduces dependence on a single source.

2. Proactive Compliance Management

Staying ahead of evolving regulations and compliance requirements is crucial. Cannabis businesses must proactively invest in compliance expertise and systems to navigate the complex legal landscape successfully.

3. Adaptability and Resilience

The cannabis industry has faced numerous challenges, and resilience is key to overcoming obstacles. Being adaptable to changes, seeking innovative solutions, and forging strategic partnerships will help businesses weather uncertainties and thrive in a rapidly evolving market.

7. Examining the Strategic Position of the Cannabis Industry: A SWOT Analysis

Strengths Weaknesses
Increasing legalization and acceptance of cannabis Disrupted payroll and HR operations
Growing market demand and revenue potential Increased compliance and regulatory challenges
Innovative product offerings Limited access to HR solutions
Strong consumer interest and loyalty Reputational risks and stigma
Opportunities Threats
Seek specialized service providers Regulatory uncertainty
Prioritize compliance expertise Risk and compliance concerns
Embrace technology and automation Reputational considerations
Build strategic partnerships Financial and banking restrictions
Advocate for industry recognition Supply and demand volatility

8. How UZIO Can Help Cannabis Companies Navigate the Challenges

In light of the implications caused by Paychex’s service modifications and cessation, UZIO emerges as a trusted partner, offering solutions to help cannabis companies navigate these challenges effectively:

1. Comprehensive Payroll and HR Services

UZIO provides a comprehensive suite of payroll and HR services tailored specifically for the cannabis industry. From payroll processing and tax compliance to benefits administration and employee self-service, UZIO offers a range of solutions to meet the unique needs of cannabis companies.

2. Compliance Expertise

With a deep understanding of the cannabis regulatory landscape, UZIO helps businesses stay compliant with industry-specific regulations. The platform integrates up-to-date compliance features, ensuring accurate reporting, adherence to tax obligations, and compliance with state and federal employment laws.

3. Seamless Transition and Integration

UZIO’s platform facilitates a seamless transition for cannabis companies, ensuring minimal disruption to their operations. The platform easily integrates with existing systems, allowing for a smooth onboarding process and minimizing any potential gaps in payroll and HR management.

4. Focus on Growth and Scalability

UZIO’s solutions are designed to support the growth and scalability of cannabis businesses. The platform adapts to evolving needs, enabling businesses to streamline operations, optimize workforce management, and focus on their core growth strategies within the industry.

Recommended Reading: Biggest pain point with Payroll and HR software

9. Conclusion

The modifications and cessation of services by Paychex and other mainstream payroll providers have far-reaching implications for cannabis businesses. However, UZIO emerges as a reliable partner, offering tailored payroll and HR solutions to help cannabis companies navigate these challenges effectively. By providing comprehensive services, expertise in compliance, seamless integration, and a focus on growth, UZIO empowers cannabis businesses to overcome the limitations.

To know more about UZIO payroll solution for the Cannabis Industry and get in touch with us for an expert-led demo.


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UZIO Announces Next Day Tip Payout Feature for the Restaurant Industry

UZIO Announces Next Day Tip Payout Feature for the Restaurant Industry

Great Falls, VA.  May 25, 2023

UZIO, unveils Next Day Tip Payout Feature, Revolutionizing Payroll for the Restaurant Industry.

UZIO, the leading provider of innovative payroll technology solutions, is thrilled to announce the release of its groundbreaking Next Day Tip Payout feature, designed specifically for the restaurant industry. This revolutionary feature promises to transform the way restaurants handle tip distribution, ensuring timely and equitable compensation for employees.

In the fast-paced world of restaurants, UZIO recognizes the importance of efficient and fair tip management. With the Next Day Tip Payout feature, restaurant owners and managers can now effortlessly streamline the process of distributing tips earned by their hardworking staff, eliminating unnecessary delays and enhancing employee satisfaction.

Key Benefits of UZIO’s Next Day Tip Payout Feature:

  1. Timely Compensation: UZIO’s Next Day Tip Payout ensures that restaurant staff receive their hard-earned tips promptly, addressing their financial needs and providing peace of mind. By leveraging UZIO’s advanced technology, employers can now distribute tips on the very next business day.
  2. Fair Distribution: UZIO’s innovative solution enables equitable distribution of tips among the entire restaurant team. By accurately tracking and allocating tips based on established pooling or sharing policies, UZIO ensures that each employee receives their fair share, recognizing their contributions to the overall dining experience.
  3. Enhanced Employee Satisfaction: UZIO understands that motivated employees are the key to a successful restaurant. By facilitating a seamless and prompt tip payout process, UZIO’s Next Day Tip Payout feature boosts employee morale, motivation, and job satisfaction, contributing to a positive work environment.
  4. Simplified Payroll Management: UZIO’s comprehensive payroll platform integrates the Next Day Tip Payout feature seamlessly, simplifying payroll management for restaurant owners and managers. The intuitive interface allows for easy configuration and customization, ensuring a hassle-free experience.

At UZIO, we are committed to providing innovative solutions that address the unique challenges faced by businesses in various industries,” said Sanjay Singh, CEO of UZIO. “The Next Day Tip Payout feature empowers restaurant owners and managers to streamline their tip distribution process, ultimately benefiting both employers and employees.

UZIO’s Next Day Tip Payout feature is now available to restaurant owners and managers seeking to optimize their payroll processes. To learn more about this solution and how it can transform your restaurant’s operations, please visit www.uzio.com

About UZIO:

With over 150+ broker partners, 1700+ Employers relying on UZIO and 70+ carriers serving plans, UZIO offers an Integrated HR, Benefits Administration, and Payroll technology platform for brokers, employers, and employees in the SMB space. UZIO enables SMBs to manage HR and compliance with its user-friendly platform and advanced features.

UZIO Product Updates, May 2023

List of 2024 Federal Holidays for Small Businesses That You Need To Know

List of 2024 Federal Holidays for Small Businesses That You Need To Know

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There are two types of federal holidays in the United States.

First, there are paid holidays that are required by law to be observed by all private and government employers—these include holidays such as Labor Day and Veteran’s Day that commemorate events of national importance.

Then there are those holidays that are simply days off—holidays such as New Year’s Day and Independence Day that celebrate significant events in American history—which might or might not be observed depending on the individual employer’s practices.

Here’s a full list of federal holidays in 2024 so you can plan your year accordingly!

federal holidays 2024 calendar download

1. New Year’s Day

Monday, January 1, 2024

Beginning on January 1, 2024 New Year’s Day will be a federal holiday honoring new years and will be treated as a holiday for pay and leave purposes.

2. Martin Luther King Jr.’s Birthday

Third Monday in January | Monday, January 15, 2024

One of America’s biggest holiday celebrations, Martin Luther King Jr.’s Birthday, is held on January 15 in 2024. On that day, thousands of communities across America host a variety of events to commemorate Dr. King’s life and work.

3. Washington’s Birthday (Presidents’ Day)

Third Monday in February | Monday, February 19, 2024

President’s Day is a federal holiday observed on Monday, February 19, to honor presidents of the United States.

4. Memorial Day

Last Monday in May | Monday, May 27, 2024

This federal holiday honors those who have died serving in the U.S. Armed Forces and takes place on May 27 this year.

5. Juneteenth

Wednesday, June 19, 2024

Juneteenth (short for “June Nineteenth”) is usually celebrated on the third Saturday in June and commemorates the end of slavery, is a federal holiday in the United States.

6. Independence Day (4th of July)

Thursday, July 4, 2024

Independence Day is a federal holiday in the US. Independence Day, or more commonly known as the Fourth of July, is a federal holiday to commemorate the adoption of the Declaration of Independence on 4 July 1776, declaring independence from the Kingdom of Great Britain.

7. Labor Day

First Monday in September | Monday, September 2, 2024

This holiday is held to honor American workers for their contributions to society through labor unions, minimum wage laws, and other benefits.

8. Columbus Day

Second Monday in October | Monday, October 14, 2024

This federal holiday is observed on October 14 this year and honors Christopher Columbus, who was born on October 12, 1451. (also observed as Indigenous Peoples Day)

9. Veterans Day

Monday, November 11, 2024

Veterans Day is an annual holiday in America honoring the 24.9 million military veterans in the United States. Veterans Day is both a federal and state holiday and is usually observed on November 11 each year.

Recommended reading: Looking for ACA Health Insurance Coverage? Learn here what is new in 2023!

10. Thanksgiving Day

Fourth Thursday in November | Thursday, November 28, 2024

Thanksgiving, or Thanksgiving Day as it is called by many is celebrated on the fourth Thursday in November each year.

11. Christmas Day​

Wednesday, December 25, 2024

Christmas Day is celebrated in the USA on the 25th December each year. Christmas is a time of getting together with family and friends and the giving and receiving of gifts.

Does your state celebrate other holidays?

Certain U.S. states have their own state-wide holidays that are observed by state governments and banks. Some of these include:

  • Nevada’s Nevada Day – the last Friday in October of every year
  • Georgia’s Founding Day – a holiday that celebrates its founding on February 12, 1733
  • Wisconsin has several – Casimir Pulaski Day on March 4, and Robert La Follette Sr. Day on June 14
  • Hawaii Native Royalty – March 26 and June 11

FAQs

Q: Inauguration Day

A. A significant day that occurs every four years is Inauguration Day, marking the commencement of a new president’s term. Although not an annual event, it is a designated holiday for federal employees in the Washington D.C. area, typically on January 20th following a presidential election.

Q: Holiday Pay

A: For federal employees, holidays like the ones listed are typically paid days off. In the private sector, holiday pay varies by employer. It’s essential for workers to check with their human resources department to understand their company’s holiday pay policy.

Q: Holiday Schedule

Federal holidays often impact the holiday schedule for businesses and government operations. For example, when a federal holiday falls on a weekend, it’s generally observed on the nearest weekday, affecting the opening hours of government offices and some businesses.

Q: Public Holiday

While all federal holidays are public holidays, not all public holidays are observed nationwide. Some holidays, such as Martin Luther King Jr. Day, are federal public holidays, while others, like Good Friday, are public holidays observed in certain states.

Q: Holiday Falls

When a federal holiday falls on a Saturday, it is typically observed on the preceding Friday. If the holiday falls on a Sunday, it is generally observed on the following Monday. This ensures that federal employees can enjoy the holiday outside of a standard workday.

Q: Legal Public Holiday

The United States Code establishes certain days as legal public holidays. These are days when all non-essential federal government offices close, and most federal employees are excused from work without loss of pay.

Q: Washington’s Birthday

Commonly referred to as Presidents’ Day, Washington’s Birthday is a federal holiday celebrated on the third Monday of February in honor of George Washington’s birthday. However, the term “Presidents’ Day” has become widely used to honor all past presidents of the United States.

Q: Use Names

Different states and localities may use alternative names for the same holiday. For instance, some states observe “Columbus Day” as “Indigenous Peoples’ Day” to recognize the history and contributions of Native Americans.

Q: State Local Governments

State and local governments may observe additional holidays that are not recognized at the federal level. These holidays can vary greatly depending on local history, culture, and significance.

Get in touch with us for an expert-led demo to know more about UZIO, the best payroll management system for SMBs.


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Big changes are coming to 401(k) Retirement Plans. Are you ready?

Big changes are coming to 401(k) Retirement Plans. Are you ready?

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Introduction

Tucked inside the $1.7 trillion omnibus bill passed by Congress and Signed into law by President Biden on Friday December 23, 2022 are big changes to the 401 (k) retirement plans. These changes (Secure Act 2.0) are intended to boost retirement savings for low and middle-income workers.

Here are some of the major changes to 401(k) retirement plans starting in 2023:

Raises age to 75 for mandatory withdrawal

Earlier people with 401(k) plans must take out money from their accounts starting at age 72, to ensure they use the money rather than pass it down through their estates. The new law would increase that mandatory age to 73 starting in 2023 and then 75 starting in 2033.

Automatic enrollment

Starting in 2025, most businesses who start new retirement plans would be required to automatically enroll employees into 401(k) plans. Employees would contribute 3 to 10 percent of their wages. Each year, the contribution would increase by 1 percent until it reaches 10 percent, though not more than 15 percent.

Businesses with 10 or fewer employees and businesses that have been open for less than three years would be exempt.

Student loan matching

The employees who are paying off their student debt typically do not contribute or contribute less to 401(k). To help such employees, the law would allow employers to contribute to 401(k) plans for an employee making student debt payments.

Emergency withdrawals

Early withdrawals from a 401(k) plan come with a 10 percent tax. Under the new law, a person would be able to make one penalty-free withdrawal for unexpected expenses arising from family or personal needs. One such withdrawal of up to $1,000 would be allowed per year.

Emergency savings account

The law would give employers the option of offering their low-paid employees a savings account linked to their long-term retirement plans. The employers could also automatically opt employees into the savings accounts, contributing no more than 3 percent of the employee’s salary. The account would be capped at $2,500, and additional money would be routed into the retirement account.

529 Plan Changes

The law would allow people to roll up to $35,000 from 529 plan accounts into Roth IRAs. That would be available only for accounts in existence for at least 15 years and would be subject to Roth contribution limits.

Savers Credit

To encourage people with low and moderate incomes to save in retirement accounts, the law restructures a tax credit available to certain workers. The government would put up to $1,000 annually into the retirement accounts of eligible workers starting in 2027, regardless of whether they have an income tax liability.

Extra Catch-up contributions

The law would allow older workers to make extra catch-up contributions to 401(k) accounts. In 2023, people 50 and older will be able to contribute an extra $7,500 a year to these accounts. The catch-up amount would increase to $11,250 a year for people 60 to 63 starting in 2025.

Conclusion

These changes are the result of bipartisan efforts in the congress to address the issue of lack of retirement planning for the majority of Americans. These provisions would increase the savings Americans are putting aside for retirement.

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