Grazzy Raises $4.25 Million to Boost Employee Payments and Retention
Grazzy, a next-generation employee payments platform, has announced $4.25 million in Seed funding from Next Coast Ventures and Tuesday Capital to fuel the growth of its digital tipping, same-day pay, and better, more inclusive banking capabilities. With the completion of the Seed round, Grazzy’s total Seed funding now stands at $6.8 million.
Grazzy assists hospitality, food service, beauty, and other businesses to retain and attract staff by raising wages, granting immediate access to same-day earnings, and enabling more comprehensive financial wellbeing for hourly employees. Grazzy places emphasis on employee satisfaction, resulting in more contented employees who stay with the company longer, which in turn leads to more positive guest experiences.
The Employee Retention Credit (ERC) was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Employees may be eligible for a fully refundable tax credit of up to $26,000. Prior to January 1, 2021, the ERC was equivalent to half of an employee's wages, with a maximum of $10,000. Subsequent COVID-19 legislation has seen Congress extend and expand the ERC. Under the new legislation, employers who qualify can receive a refundable tax credit for 70% of the qualified wages paid to employees from December 31, 2020 to September 30, 2021, which will be deducted from their portion of Social Security taxes. In 2021, the maximum amount of qualified wages per employee for the first three calendar quarters is $10,000. The ERC available to each employee is up to $7,000 per quarter, meaning a total of $21,000 in 2021.
The Grazzy platform is being used by some of the world's most famous and favored hotel companies to give digital tips, same-day payments, and immediate positive feedback to their staff. Grazzy provides customers with digital tipping at no cost and the most competitive fees available.
Grazzy's platform has the convenience of P2P payments that customers enjoy, and also meets the branding, compliance, and reporting needs of enterprises to maximize their return on investment.
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/