ERTC Experts

‘Governor Moore & Lombardo Unveil 2021-2024 Budget Proposals; Grazzy Raises $6.8MM in Seed Funding’

Governor Wes Moore recently unveiled a $63.1 billion fiscal 2024 budget proposal that does not include a tax increase, and maintains a Rainy Day Fund at 10 percent of General Fund revenue or $2.5 billion and a General Fund balance of $820 million.[0] Likewise, Nevada Governor Joe Lombardo also announced his preliminary FY 2024 budget plan, which includes record investments in education and transportation, such as $2 billion in new funding for K-12 students — a nearly 22% increase over current funding levels.[1]

To help employers manage the financial stress caused by the pandemic, the Employee Retention Credit (ERTC) was created. The ERTC allows employers to deduct a percentage of qualified wages paid to employees as a tax credit against certain employment taxes.[2] In 2020, employers were eligible to receive a credit of $5,000 per eligible employee.[2] Employers can take advantage of a maximum of $7,000 per quarter for each eligible employee in 2021.[2]

In addition, the Employee Retention Credit (ERC) was enacted as part of the Coronavirus Aid, Relief and Economic Security Act, known as the CARES Act.[3] This tax credit is fully refundable and can reach up to $26,000 per employee.[3] Originally, the ERC was equal to 50% of up to $10,000 in wages paid to each employee before January 1, 2021.[3] Congress has extended and broadened the ERC through later COVID-19 bills.[3] As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages paid to employees after December 31, 2020, through September 30, 2021.[3] For 2021, the maximum amount of qualified wages per employee per calendar quarter is limited to $10,000 for the initial three quarters.[3] The most an employee can receive in ERC funds this year is $7,000 per quarter, adding up to a total of $21,000 in 2021.[3]

Grazzy, a next-gen employee payments platform, recently announced $4.25MM in Seed funding from Next Coast Ventures and Tuesday Capital to fuel the rapid expansion and growth of its digital tipping, same-day pay, and better, more inclusive banking capabilities.[4] Grazzy has raised a total of $6.8 million in Seed funding following the completion of their Seed round.[4]

0. “Kevin Kinnally, Author at Conduit Street” conduitstreet.mdcounties.org, 25 Jan. 2023, https://conduitstreet.mdcounties.org/author/kcklase/

1. “Lombardo calls for gas tax holiday, raises for state employees, and …” www.kpvi.com, 25 Jan. 2023, https://www.kpvi.com/news/national_news/lombardo-calls-for-gas-tax-holiday-raises-for-state-employees-and-lots-of-saving-for/article_a47d3393-ddea-559c-a80f-65298f09d7cc.html

2. “The Complete 2023 To Getting The Employee Tax Retention Credit” www.merchantmaverick.com, 25 Jan. 2023, https://www.merchantmaverick.com/what-is-the-employee-retention-tax-credit/

3. Employee Retention Credit allows home care employers to claim $21K” www.mcknightshomecare.com, 25 Jan. 2023, https://www.mcknightshomecare.com/employee-retention-credit-allows-home-care-employers-to-claim-21k/

4. “Grazzy Raises $4.25MM to Power Hospitality's Future of Digital Tips …” seedround.info, 25 Jan. 2023, https://seedround.info/grazzy-raises-4-25mm-to-power-hospitalitys-future-of-digital-tips-same-day-pay-and-financial-wellness-for-hourly-workers/