Grazzy Announces $4.25MM Seed Funding to Improve Employee Retention with Digital Tipping and Same-Day Pay
Grazzy, a next-gen employee payments platform, has 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. Grazzy has raised a total of $6.8MM in Seed funding following the completion of the Seed round.
The Employee Retention Credit (ERTC) was enacted as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and is a fully refundable tax credit that can be as high as $26,000 per employee. The credit is equal to 50% of up to $10,000 in wages paid to each employee before Jan. 1, 2021. Congress has expanded and extended the ERC through various COVID-19 related pieces of legislation. Employers who meet the criteria now have the ability to claim a refundable tax credit against the employer part of Social Security tax, amounting to 70% of the qualified wages paid to employees between Dec. 31, 2020, and Sept. 30, 2021. For 2021, the qualified wage limit per employee per calendar quarter is $10,000 for the first three calendar quarters.
To be eligible, 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 continued to pay at least 80% of their employees.
Grazzy assists businesses such as hotels, bars, restaurants, salons and beyond with their employee retention and recruitment needs. It does this by raising wages, enabling instantaneous access to same-day income, and providing more comprehensive financial well-being for hourly staff. Grazzy places emphasis on employee satisfaction, ensuring that they are content in their roles and in turn, providing guests with an exceptional experience. This in turn leads to longer employee retention. Grazzy provides a peer-to-peer payments experience that consumers enjoy, along with the branding, compliance, and reporting capabilities needed to generate a high return on investment. Grazzy also unlocks access to digital tips, paid via customer credit cards, allowing service-based businesses to offer same-day, instant access to tips for their staff.
Grazzy is the most powerful player in the market today, offering digital tipping enablement at no cost and the lowest fees in 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/
2. “How To Calculate The Employee Retention Tax Credit” www.merchantmaverick.com, 24 Jan. 2023, https://www.merchantmaverick.com/how-to-calculate-erc/