Wurk, which makes HR, payroll and tax software for the cannabis industry, has raised a further $2 million in seed funding, bringing its total to $3 million. The money comes at a time when investors are seeing great growth potential for the marijuana industry, especially in technology that helps navigate particularly complex, and sometimes conflicting, state and federal tax laws.

Wurk’s platform is designed to navigate the Federal Schedule I Substance designation for marijuana, as well as the pathwork of state and local regulations, in the context of HR and payroll infrastructure. Wurk’s Workforce Compliance software features 280E reporting (the federal tax code related to illegal substances), state-specific employee onboarding and payroll management, and is currently deployed in 12 states.

The firm’s experience navigating the difficulties of the Federal “Schedule I Substance” designation, as well as a growing patchwork of State and Local regulations, helps cannabis companies provide the necessary HR and Payroll infrastructure to take care of their employees and stay compliant with government regulations. Wurk’s Workforce Compliance technology supports operators in 12 states with solutions like 280E reporting, state-specific employee onboarding, and payroll management as part of a full suite platform.

The company also recently hired Matt Kelly as chief financial officer and Jay Meyers as chief revenue officer.

A marijuana-growing business in Colorado
A marijuana-growing business Bloomberg News

“With eight new markets emerging in November, including the passing of Prop 64 in California and the new administration’s focus on compliance, we knew we would need to scale the business quicker to meet this demand,” said Keegan Peterson, CEO of Wurk, in a statement. “We are a service based organization. The more businesses we can reach, the more people we can help. Our new funding gives us the ability to scale our business in a way that helps us keep up with the demands of this evolving and growing marketplace.”

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