U.S. cannabis operators are scrambling to find a new payroll provider after receiving a memo from Paychex advising that the company will no longer process direct deposits or offer other services for marijuana-related businesses.

A March 29 memo obtained by MJBizDaily warns that, effective May 1, New York-based Paychex will no longer process direct deposit payments.

“Cannabis-related businesses (CRBs) continue to face significant banking obstacles because major banks will not allow electronic fund transfers from CRBs over their networks – typically because of differing state and federal regulations around cannabis,” according to the memo from Paychex, which provides payroll and human resource products and services.

“Paychex has worked diligently to provide as many of our services as we can within the parameters established by our banking partners. Unfortunately, we can no longer provide you with some of the services you are currently receiving from Paychex.”