Unlocking the Benefits of the Employee Retention Credit with Grazzy
The Employee Retention Credit (ERC) is a tax credit available to employers, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide relief from the economic impact of the coronavirus pandemic. The ERC is a fully refundable tax credit that can be as high as $26,000 per employee. Employers may qualify for the ERC if they have fully or partially suspended their operations due to governmental orders limiting commerce, travel or group meetings due to COVID-19 or if they had gross receipts for any such quarter or the immediately preceding quarter that are less than 80% of their gross receipts for the same quarter in 2019.
For 2020, employers could claim a credit of up to $5,000 for the year per eligible employee and for 2021, employers may claim up to $7,000 per quarter per eligible employee, for a total of $21,000. The ERC allows employers to deduct a percentage of qualified wages paid to employees, helping to lower the amount of employment taxes paid quarterly.
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. Grazzy has raised a total of $6.8MM in Seed funding, concluding their Seed round.
Grazzy assists businesses including hotels, bars, restaurants, salons and more to enhance staff retention and recruitment by raising wages, providing immediate access to same-day wages, and providing more comprehensive financial wellbeing for hourly workers. The platform offers the modern familiarity of a P2P payments experience that guests love, but with the enterprise-level branding, compliance and reporting that's required to successfully deliver ROI at scale. It helps hourly employees make more money, access it the same day, and save and spend in better ways.
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, with 80% of employees saying it would increase their employer trust and loyalty. The platform further reduces the risk involved for businesses who don't want to keep money in a safe to facilitate same-day tip outs to staff, and provides automated fund transfers at the end of a shift.
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. “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. “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/