Home Depot has just announced that it is also giving it’s hourly employees big bonuses because of the Republican tax reform bill:
CNBC – Home Depot is awarding its hourly employees in the U.S. a one-time cash bonus of as much as $1,000 following the passage of new tax legislation.
All U.S. hourly workers will get at least a $200 bonus, a spokeswoman told CNBC, and the maximum payout is $1,000 for workers who’ve served at Home Depot for at least 20 years.
The company joins a growing list of corporations, and many retailers, using new tax benefits to invest in their workers.
“This incremental investment in our associates was made possible by the new tax reform bill,” Chief Executive Officer Craig Menear said in prepared remarks. “We are pleased to be able to provide this additional reward to our associates.”
The home improvement retailer said the new tax law will result in added tax expenses of about $150 million in the fourth quarter, which are tied to taxes on offshore earnings. These expenses and the bonus payments will lower Home Depot’s fiscal 2017 earnings by 19 cents a share, the company said.
For fiscal 2018, Home Depot is still evaluating the legislation’s impact on its business, but said it should be “beneficial.”
It’s great to see companies like Home Depot ‘sharing the wealth’ with their employees. Of course it also gets them good will from the public, so I’m sure there’s a marketing component to all of this. But that withstanding, this is good news for everyone.