Grazzy Raise $6.8MM in Seed Funding to Help Employers Improve Employee Retention
The Employee Retention Credit (ERC) is a tax credit offered to employers to help ease the financial burden of the coronavirus pandemic. The ERC was enacted as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act and is a fully refundable tax credit that can be as high as $26,000 per employee. Prior to Jan. 1, 2021, the ERC was equal to 50% of the first $10,000 in wages paid to each employee. Subsequent COVID-19 legislation has led to Congress extending and expanding the ERC. Employers who meet the requirements of the new law may receive a refundable tax credit equal to 70% of the qualified wages paid to employees between Dec. 31, 2020, and Sept. 30, 2021, that is credited against the employer’s share of Social Security tax. For the first three calendar quarters of 2021, the maximum amount of qualified wages that can be paid to an employee is $10,000 per calendar quarter. The most an employee can receive from ERC in a single calendar quarter is $7,000, with a total of $21,000 allowed in 2021.
If an employer has suspended its operations either in full or in part, as a result of a governmental order that restricts commerce, travel, or public gatherings because of COVID-19, they are eligible to receive the Employee Retention Credit (ERC). Employers may also be eligible for the ERC in 2021 if their gross receipts for either the current or the previous quarter are less than 80% of their gross receipts for that same quarter in 2019.
If your business has suffered a partial or full shutdown due to the economic impact of COVID-19 or seen a significant drop in gross receipts compared to 2019, yet still managed to pay 80% or more of your employees, you qualify. Those meeting the eligibility requirements may proceed in submitting an application for the ERC tax credit.
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. This brings Grazzy's total Seed funding to $6.8MM.
Grazzy aims to boost employee retention and recruitment for hospitality, bar, dining, beauty, and other businesses by providing higher wages, immediate access to daily pay, and comprehensive financial health resources for hourly staff.
0. “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/
1. “How To Calculate The Employee Retention Tax Credit” www.merchantmaverick.com, 24 Jan. 2023, https://www.merchantmaverick.com/how-to-calculate-erc/
2. “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/