ERTC Experts

Governor Wes Moore & Gov. Joe Lombardo Unveil Budget Proposals; Grazzy Secures $4.25MM in Seed Funding for Employee Payments Platform

Governor Wes Moore of Maryland recently unveiled a $63.1 billion fiscal 2024 budget proposal that does not include a tax increase and maintains a Rainy Day Fund at the target level of 10 percent of General Fund revenue or $2.5 billion.[0] Meanwhile, Nevada Gov. Joe Lombardo announced his preliminary FY 2024 budget plan, which includes a record $2 billion in new funding for Nevada’s K-12 education system and an increase in total per-pupil spending by more than $2,000 per student– from $10,290 this year to $12,406 in the upcoming fiscal year.[1]

Payroll taxes for employers can be a great way to offer relief to employees during the coronavirus pandemic.[2] The Employee Retention Credit (ERTC) was enacted as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).[3] It is a fully refundable tax credit that can be as high as $26,000 per employee and is equal to 50% of up to $10,000 in wages paid to each employee before Jan. 1, 2021.[3] Employers can claim a credit of up to $5,000 for the year per eligible employee for 2020, and up to $7,000 per quarter per eligible employee for 2021.[2] To qualify, employers must have experienced a partial or full suspension due to COVID-19 economic shutdowns or a significant decline in gross receipts compared to 2019, and must have continued to pay at least 80% of their employees.[4]

Grazzy, a next-gen employee payments platform, recently announced $4.25MM in Seed funding from Next Coast Ventures and Tuesday Capital.[5] The funding will be used to help hotels, bars, restaurants, salons and more improve employee retention and recruiting by increasing wages, unlocking instant access to same-day earnings, and offering more inclusive financial wellness for hourly employees.[5] Grazzy enables hourly workers to increase their earnings, access it on the same day, and manage their money more efficiently.[5] It also enables digital tipping, instant tip-outs, and inclusive banking solutions that are built to scale with hospitality and services businesses of any size.[5] [5]

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. “How To Calculate The Employee Retention Tax Credit” www.merchantmaverick.com, 25 Jan. 2023, https://www.merchantmaverick.com/how-to-calculate-erc/

5. “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/