Grazzy Secures $4.25MM in Seed Funding to Help Improve Employee Retention and Financial Wellness
Grazzy, a modern employee payment platform, has received $4.25 million in Seed funding from Next Coast Ventures and Tuesday Capital to accelerate its expansion and development of digital tipping, same-day pay, and improved, inclusive banking services. Grazzy has secured a total Seed funding of $6.8MM upon the completion of its Seed round.
The Employee Retention Credit (ERTC) is a fully refundable tax credit that allows employers to deduct a percentage of qualified wages paid to employees. This tax credit reduces the quarterly employment taxes paid by employers, providing relief from the effects of the coronavirus pandemic. In 2020, employers can be eligible for a credit of up to $5,000 per employee for the year. Employers may be eligible to receive up to $7,000 per quarter per employee for 2021.
Eligible employers can 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. The maximum amount of qualified wages per employee for 2021 is $10,000 per calendar quarter for the first three quarters of the year. The ERC amount per employee is capped at $7,000 per quarter in 2021, with a total of $21,000 available for the year.
By utilizing Grazzy, businesses such as hotels, bars, restaurants, salons, and more are able to improve employee retention and recruitment. This is accomplished through raising wages, providing instantaneous access to same-day earnings, and providing more inclusive financial wellness programs for their hourly employees. Grazzy places emphasis on employee satisfaction, which in turn leads to increased employee retention and improved guest experiences.
Grazzy offers hourly workers the opportunity to bring in additional income, get their pay the same day, and manage their money more effectively. Grazzy enhances the financial wellbeing of frontline staff, thus decreasing expenditure on recruitment and retention for hotels, bars, restaurants, and salons. Our payment system is designed to expand, providing digital tipping, fast tip-outs, and banking services that can be adapted to businesses of any size in the hospitality and services industries.
Many of the world's most renowned hotel companies are taking advantage of the Grazzy platform to give their employees the ability to receive digital tips, same-day pay, and instant positive feedback. Grazzy provides customers with digital tipping capabilities without charge and the lowest market fees.
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. “The Complete 2023 To Getting The Employee Tax Retention Credit” www.merchantmaverick.com, 24 Jan. 2023, https://www.merchantmaverick.com/what-is-the-employee-retention-tax-credit/
2. “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/