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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

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.
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Thursday, 25 January 2018 12:49 PM
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