Grazzy Announces $4.25MM Seed Funding to Improve Employee Retention and Financial Wellness for Hourly Employees
Grazzy, a cutting-edge employee payments platform, has just secured $4.25 million in Seed funding from Next Coast Ventures and Tuesday Capital. This investment will enable the platform to expand rapidly and offer improved digital tipping, same-day pay, and more inclusive banking features. Grazzy has now received a total of $6.8MM in Seed funding upon the completion of their Seed round.
The Employee Retention Credit (ERC) is a fully refundable tax credit that can be as high as $26,000 per employee. It was established as part of the Coronavirus Aid, Relief and Economic Security Act, known as the CARES Act. Originally, the ERC was equal to 50% of up to $10,000 in wages paid to each employee before Jan. 1, 2021, but Congress has since extended and expanded the ERC through subsequent COVID-19 legislation. As a result, 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 Dec. 31, 2020, through Sept. 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021 for the first three calendar quarters, with the maximum ERC amount available being $7,000 per employee per calendar quarter, or $21,000 in 2021.
Grazzy assists hospitality businesses with employee retention and recruitment efforts by raising wages, providing immediate access to same-day income, and delivering more comprehensive financial well-being to hourly staff. Grazzy places a strong emphasis on employee satisfaction which ultimately leads to a more positive work environment, increased job satisfaction and improved customer service.
Grazzy assists hourly workers in increasing their income, gaining access to their earnings the same day, and managing their money more efficiently. Grazzy helps to improve the financial wellbeing of frontline employees, which in turn decreases retention and recruitment costs for hotels, bars, restaurants, and salons. Our payments platform is designed to expand and grow, allowing digital tipping, immediate distributions, and banking services that accommodate hospitality and services businesses of any size.
Recently, some of the most renowned and adored hotel companies around the world have started using Grazzy to enable digital tipping, same-day payment, and prompt appreciation for their staff. Grazzy provides customers with free digital tipping and the lowest fees available on the market.
0. “Grazzy Raises $4.25MM to Power Hospitality's Future of Digital Tips …” seedround.info, 24 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/
1. “Employee Retention Credit allows home care employers to claim $21K” www.mcknightshomecare.com, 24 Jan. 2023, https://www.mcknightshomecare.com/employee-retention-credit-allows-home-care-employers-to-claim-21k/