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Home Depot to Pay $1,000 Employee Bonus After Trump Tax Cut

Home Depot to Pay $1,000 Employee Bonus After Trump Tax Cut
(Threerivers11/Dreamstime)

Thursday, 25 January 2018 12:49 PM

Home Depot Inc. is joining the parade of companies offering perks to U.S. employees after the federal tax overhaul.

The world’s largest home-improvement chain will pay hourly workers a one-time cash bonus of as much as $1,000 in the latest quarter, Home Depot said on Thursday. The move follows legislation last month that lowered the corporate taxes by 14 percentage points -- to 21 percent from 35 percent.

“This incremental investment in our associates was made possible by the new tax reform bill,” Chief Executive Officer Craig Menear said in a statement.

Home Depot joins Starbucks Corp., Wal-Mart Stores Inc., Apple Inc and other U.S. corporate giants in devoting some of their expected tax savings to employees. Still, the long-term benefit for workers is less clear. Many of the payouts have taken the form of one-time bonuses rather than permanent raises.

Home Depot also expects to pay an extra $150 million in tax expenses tied to offshore earnings. Together with the bonuses, the costs will cut profit by about 19 cents a share, the Atlanta-based company said.

Home Depot is still evaluating the effect of the tax changes on its fiscal 2018 finances, but it expects to see a “beneficial” impact. The company plans to provide full-year guidance during its earnings conference call on Feb. 20.

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Home Depot Inc. said it would give its U.S. employees a new one-time cash bonus of up to $1,000 for hourly associates in the fourth quarter as the home improvement store chain takes advantage of changes in the U.S. tax code.
home depot, pay, staff, bonus, trump, tax, cut
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Thursday, 25 January 2018 12:49 PM
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