About
Paper Trails provides end-to-end payroll and human resources solutions tailored specifically for cannabis businesses—dispensaries, cultivators, manufacturers, and retailers alike. The cannabis industry faces unique operational hurdles: shifting state regulations, limited banking access, high employee turnover, and complex tax situations like IRS Section 280E. Paper Trails addresses all of these head-on with purpose-built tools. The platform covers the full HR lifecycle, including applicant tracking, employee onboarding, time and attendance tracking (with mobile access), payroll and tax processing, benefits administration, expense management, learning management, and performance management. Its compliance tools help cannabis operators navigate state-specific labor laws and reporting requirements while maintaining 280E-compliant labor cost separation. For businesses managing tipped and non-tipped employees—common in cannabis retail—Paper Trails handles tip pooling, FICA tip credit calculations, and regulatory reporting. The platform also supports banking relationships that are often difficult for cannabis businesses to secure independently. Paper Trails serves small startups through large multi-location operations and offers dedicated HR consulting in addition to its software. Monthly webinars, a resource library, case studies, and a small business podcast round out the support ecosystem. It is a strong fit for cannabis operators looking to professionalize their HR function, reduce compliance risk, and free up time to focus on growth.
Key Features
- Cannabis-Compliant Payroll & Tax: Automates wage calculations, tax filings, and supports 280E-friendly labor cost tracking required for cannabis businesses under IRS rules.
- HR Consulting & Regulatory Compliance: Provides expert HR consulting to help cannabis operators navigate evolving state regulations, labor laws, and industry-specific compliance requirements.
- Applicant Tracking & Employee Onboarding: Streamlines the full hiring lifecycle—from posting jobs and tracking applicants to digitally onboarding new hires quickly and compliantly.
- Time & Attendance with Mobile Access: Tracks employee hours, manages scheduling, and supports mobile time entry, which is especially useful for cannabis retail and cultivation floor environments.
- Benefits & Performance Management: Administers employee benefits, manages expenses, tracks performance reviews, and supports learning management for ongoing staff development.
Use Cases
- A cannabis dispensary managing both tipped budtenders and non-tipped back-office staff needs compliant payroll, tip pooling, and FICA credit tracking all in one platform.
- A cannabis cultivation operation tracking hourly field workers across shifts uses Paper Trails' mobile time and attendance tools to automate wage calculations and reduce payroll errors.
- A multi-location cannabis retail chain standardizes HR policies, onboarding workflows, and compliance reporting across all stores using a centralized platform.
- A newly licensed cannabis startup uses Paper Trails to set up legally compliant payroll, establish banking relationships, and manage early hiring through the applicant tracking system.
- A cannabis manufacturer separates 280E-eligible labor costs from non-deductible expenses using Paper Trails' labor tracking to minimize federal tax liability.
Pros
- Industry-Specific Design: Built exclusively with cannabis operators in mind, covering 280E labor tracking, tip management, and cannabis banking relationships that generic HR tools don't address.
- All-in-One Platform: Combines payroll, tax, HR consulting, onboarding, benefits, time tracking, and learning management under a single vendor, reducing software sprawl.
- Scales with Business Size: Serves small cannabis startups through large multi-location operations, making it a long-term partner as businesses grow.
- Rich Support Resources: Offers a support center, monthly HR/payroll webinars, case studies, and a small business podcast to keep operators informed and empowered.
Cons
- Cannabis-Only Focus: The platform is tailored to the cannabis industry, so businesses operating across other sectors may find it too narrow.
- Opaque Pricing: Pricing is not listed publicly; prospective customers must request a quote or demo, which adds friction to the buying process.
- Likely US-Only: Compliance and banking features are built around US state and federal regulations, limiting usefulness for cannabis businesses in other countries.
Frequently Asked Questions
What makes Paper Trails different from general HR/payroll software?
Paper Trails is purpose-built for the cannabis industry, addressing industry-specific challenges like IRS Section 280E labor tracking, limited banking access, high employee turnover, and state-level cannabis compliance—features that generic HR platforms don't provide.
Does Paper Trails support Section 280E tax compliance?
Yes. Paper Trails includes 280E-friendly labor tracking that helps cannabis businesses separate cost of goods sold (COGS) from other expenses, which is critical for managing federal tax liability under IRS Section 280E.
What sizes of cannabis businesses does Paper Trails serve?
Paper Trails serves cannabis businesses of all sizes—from small single-location startups to mid-sized and large multi-location operations including dispensaries, cultivators, manufacturers, and distributors.
Does Paper Trails help with tipped employee payroll?
Yes. The platform handles tip pooling arrangements, reported tip tracking, FICA tip credit calculations, and compliant tip-related reporting, which is common in cannabis retail environments.
How do I get started with Paper Trails?
You can fill out a contact form on their website to request a quote or demo. A member of their team will follow up to discuss your business's specific payroll and HR needs.
