ROCHESTER, N.Y. – Third-party payroll and human resources service provider Paychex will suspend direct deposits, time and attendance, and automatic payroll tax administration for the cannabis industry effective May 1. The company did not provide a clear answer for its decision in a memo sent to clients on March 29.

Paychex handles payments for one in twelve private sector employees in the United States, and with one month to find a suitable replacement, employers are scrambling to meet their payroll obligations in an already cumbersome banking environment.

“There are very few providers willing to service the industry, so when you find one with the experience and technology to service plant-touching businesses, it’s very upsetting to cannabis business owners as well as accountants to see them cease operating in the cannabis space,” said Angela Mays, founder and chief executive officer at The Blunt Accountant. “The choices available are few, and most lack the technological capabilities and experience that Paychex brings to the marketplace. It makes our jobs difficult as accountants and it also creates additional headaches for plant-touching business owners with the lack of businesses willing to service the industry.”