Keep Your Best Budtenders, Fight Turnover, and Expand Wellness Benefits — With Potential Payroll Tax Savings and Virtually No Administrative Burden
ANN ARBOR — A Michigan or Ohio cannabis dispensary with 25 participating employees could potentially save $23,900 annually in employer payroll taxes while providing additional healthcare and wellness benefits, according to financial services consultant William “Bill” Shaw of Genus Credit Services.
That is the financial opportunity behind WOW, a supplemental program designed to help cannabis operators retain employees, improve benefits, and control operating expenses.
Why should dispensary owners consider WOW?
- Potential payroll savings: Shaw estimates average annual employer savings of approximately $956 per participating employee, before confirming any program expenses.
- No additional net operating costs: WOW representatives say the program is designed to offset its costs through qualifying payroll tax savings.
- Minimal administration: WOW handles most program administration and paperwork. Employers primarily provide employee lists and coordinate payroll requirements.
- More employee benefits: Telemedicine, mental health counseling, prescription savings, dental discounts, and personalized wellness resources.
- A competitive hiring advantage: Additional benefits could help dispensaries attract and retain experienced budtenders.
For Michigan and Ohio cannabis businesses facing tight margins, pricing pressure, and competition for employees, those potential benefits could be significant.
What Could WOW Save Your Dispensary?
In a March 2026 MITechNews interview and report, Shaw said employers could potentially save as much as $1,200 annually per participating employee, with typical savings averaging approximately $956.
Using Shaw’s $956 estimate, the potential annual payroll savings would be:
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These figures illustrate potential payroll tax savings before any applicable program expenses. They are not guaranteed net savings. Actual results depend on employee eligibility, participation, plan design, and applicable tax rules.
For a cannabis operator with several dispensary locations, the potential savings could be greater if more employees qualify and participate.
The program’s central financial proposition is that qualifying payroll tax savings can offset the cost of providing supplemental wellness benefits.
The Cost of Losing a Good Budtender
Experienced budtenders do more than sell cannabis products.
They explain product differences, answer customer questions, understand inventory, follow state regulations, and develop relationships with repeat customers.
When an experienced employee leaves, dispensary owners lose valuable knowledge and must spend time and money recruiting and training a replacement.
Research by cannabis analytics company Headset found that 54.6 percent of budtenders working during a 12-month period left their dispensaries. Another 23 percent of newly hired budtenders did not complete their first month.
The analysis covered June 2021 through May 2022 across nine U.S. markets, including Michigan. Although the figures are historical and not specific to Ohio, they illustrate the retention challenges cannabis retailers have faced.
As MITechNews reported in September, replacing experienced employees can become a substantial operating expense for dispensaries.
For independent dispensaries and multi-location operators, improving employee retention can be an important part of controlling costs and protecting customer relationships.
WOW offers another tool for supporting that goal.
Your Wellbeing. Your Life. Your Choice.
Unlike traditional employee wellness programs that emphasize the same activities for everyone, WOW gives participating employees access to resources they can select based on their individual needs.
For a budtender experiencing workplace stress, that might mean confidential mental health counseling.
For an employee working long retail shifts, it might mean accessing a doctor virtually rather than taking time away from work to visit a clinic.
For someone struggling with prescription costs, it could mean access to eligible medications at reduced prices or no cost.
For employees balancing work, childcare, family responsibilities, and financial pressures, WOW offers wellness resources through a digital dashboard and mobile app.
The central idea is simple: Employees should have the freedom to pursue wellbeing in ways that fit their lives.
What Benefits Can Budtenders Receive?
WOW is designed to supplement, not replace, an employer’s existing healthcare coverage.
Depending on eligibility and program terms, participating employees may have access to:
- 24/7 telemedicine: Virtual medical consultations, urgent care resources, and primary care services.
- Mental health support: Counseling, stress management, emotional resilience resources, and support groups.
- Prescription savings: Eligible no-cost medications and discounts on other prescriptions.
- Dental discounts: Savings of up to 60 percent through participating providers.
- Personalized wellness programs: Health assessments, wellness coaching, and educational resources.
- Financial wellbeing: Potential improvements in take-home pay through qualifying payroll tax savings.
Employees can select resources that address their personal needs while completing the program’s required activities.
WOW Handles the Administration. You Run Your Dispensary.
For many cannabis dispensary owners, administrative simplicity may be one of WOW’s most attractive features.
Operators already manage inventory, employee schedules, security, regulatory compliance, customer service, and financial reporting.
Adding another employee benefits program can sound like additional work.
WOW is designed to avoid that problem.
According to WOW representatives, the program handles employee enrollment administration, wellness services, and related paperwork.
The employer’s primary responsibility is to provide employee lists and coordinate necessary payroll arrangements.
That means dispensary owners generally do not need to hire a separate benefits coordinator or develop their own wellness administration system.
For smaller independent dispensaries without dedicated human resources departments, that simplicity could be especially valuable.
How Does WOW Generate Payroll Tax Savings?
WOW incorporates a cafeteria-plan structure under Section 125 of the Internal Revenue Code.
Qualifying Section 125 arrangements allow certain employee benefit contributions to be deducted from wages before applicable federal income and payroll taxes are calculated.
These deductions can potentially reduce taxable wages for employees and the employer’s matching payroll tax obligations.
According to WOW representatives, the program offers benefits across more than 60 areas and uses a payroll contribution structure intended to generate financial advantages for participating employers and employees.
WOW describes a $300 pre-tax contribution as part of its program structure.
The company’s position is that qualifying payroll tax savings can offset the cost of providing supplemental benefits, potentially allowing employers to expand wellness services without increasing net operating expenses.
However, Section 125 tax treatment is available only for qualifying benefits and properly structured arrangements. Actual savings depend on employee participation, eligibility, payroll calculations, plan design, and compliance requirements.
Dispensary owners should request a detailed financial illustration and have their tax or payroll advisors review the arrangement before enrolling.
Why This Matters in Michigan and Ohio
Michigan cannabis retailers continue to operate in a highly competitive market characterized by pricing pressure and tight margins.
Ohio’s developing adult-use cannabis market has created additional retail opportunities and workforce demands.
In both states, dispensaries compete for experienced employees who understand cannabis products, customer service, and regulatory requirements.
Smaller operators may find it difficult to match the benefits packages offered by larger cannabis chains or employers in other industries.
WOW could provide another way to compete.
A dispensary that offers access to telemedicine, mental health counseling, prescription savings, and other wellness resources may have an advantage when recruiting employees who value those services.
For existing budtenders, additional wellness support could become another reason to remain with their employer.
Multi-location cannabis operators may also find value in offering consistent supplemental wellness benefits across their stores.
Can Better Benefits Reduce Budtender Turnover?
Employee turnover has many causes, including wages, scheduling, management practices, workload, and opportunities for advancement.
No wellness program can eliminate those challenges.
However, providing additional support for employees’ physical, emotional, and financial wellbeing may help dispensary owners demonstrate that they value their workforce.
WOW’s potential contribution is straightforward: give employees more choices while reducing the administrative and financial barriers that can prevent employers from offering additional benefits.
Whether those benefits translate into lower turnover will depend on employee participation, satisfaction, and other workplace conditions.
For dispensary owners, the program may be worth evaluating as part of a broader recruitment and retention strategy.
A Different Approach to Supporting Budtenders
Budtenders are often the public face of a cannabis dispensary.
They answer questions, explain products, assist customers, and help create the shopping experience that determines whether customers return.
But those employees have personal needs of their own.
WOW is built around the idea that wellbeing is personal. Employees have different health concerns, family responsibilities, financial circumstances, and wellness goals.
Giving budtenders more choices—and making those services easier to access—offers dispensary owners another way to support the people who support their customers.
More wellness benefits for budtenders. Minimal administrative work for dispensary owners. Potential payroll savings that could offset the cost of the program.
Find Out What WOW Could Save Your Dispensary
Michigan and Ohio cannabis dispensary owners, multi-location operators, and other cannabis businesses can request a personalized financial illustration showing how WOW could work for their employees.
The presentation can explain available benefits, employee eligibility, projected payroll savings, program costs, and the administrative support WOW provides.
If your dispensary has 10, 20, 25, or more employees, find out whether WOW could expand your benefits package without increasing your net operating costs.
To learn more, email Bill Shaw at Genus Credit Services.
Or phone him at 810-423-1420.
Genus Credit Services is an MITechNews advertiser.
