Readers respond to taxes and benefits
The Home Depot said it will pay a one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017, following the passage of the tax reform bill.
That’s not an unusual approach to the tax windfall, according to readers of HBSDealer. According to the weekly poll question, 25% of respondents said their company would invest in the company, and another 9% said their companies would provide bonuses for employees,
Here's the breakdown of responses:
[Note, the poll is still open. You can cast your ballot here.]
In recent news report, Lowe’s Cos. and Scotts Miracle-Gro Co. also pointed to varying degrees of post-passage benefit improvement.
Lowe’s said it is expanding several benefits and offering a one-time bonus of up to $1,000. According to CEO Robert Niblock, the move is an “example of how we will continue to invest in our employee and customer experience as we continue to evaluate the impact of tax reform.”
At Scotts, CEO Jim Hagedorn said shareholders and employees will benefit from the new tax structure in the United States.
“We expect the first 20% of the savings we achieve will eventually result in higher wages for most of our hourly associates and improvements in our benefit programs for all of our people,” Hagedorn told analysts during the company’s first quarter earnings call.
The Home Depot and Scotts were among the first home improvement companies to officially raise their voices on tax policy. At Home Depot, bonuses will be paid in addition to the company’s Success Sharing bonuses for hourly associates, according to the company.
“We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service,” said Craig Menear, Home Depot chairman, CEO and president. “This incremental investment in our associates was made possible by the new tax reform bill.”
The Home Depot also announced that it estimates the impact of the Tax Cuts and Jobs Act will result in additional net tax expense of approximately $150 million in the fourth quarter of fiscal year 2017, primarily related to taxes on unremitted offshore earnings.
The Atlanta-based home improvement giant said it is still evaluating all the provisions of the tax reform legislation and estimates that the net impact of tax reform on its 2018 tax provision and cash taxes paid will be beneficial
That’s not an unusual approach to the tax windfall, according to readers of HBSDealer. According to the weekly poll question, 25% of respondents said their company would invest in the company, and another 9% said their companies would provide bonuses for employees,
Here's the breakdown of responses:
- Invest in company — 25%
- Hire more people — 17%
- None of these options — 17%
- All of these options — 16%
- Pay off debts — 13%
- Bonuses for employees — 9%
- Increase marketing — 2%
- Stock buybacks — 2%
- Save for a rainy day — 0%
[Note, the poll is still open. You can cast your ballot here.]
In recent news report, Lowe’s Cos. and Scotts Miracle-Gro Co. also pointed to varying degrees of post-passage benefit improvement.
Lowe’s said it is expanding several benefits and offering a one-time bonus of up to $1,000. According to CEO Robert Niblock, the move is an “example of how we will continue to invest in our employee and customer experience as we continue to evaluate the impact of tax reform.”
At Scotts, CEO Jim Hagedorn said shareholders and employees will benefit from the new tax structure in the United States.
“We expect the first 20% of the savings we achieve will eventually result in higher wages for most of our hourly associates and improvements in our benefit programs for all of our people,” Hagedorn told analysts during the company’s first quarter earnings call.
The Home Depot and Scotts were among the first home improvement companies to officially raise their voices on tax policy. At Home Depot, bonuses will be paid in addition to the company’s Success Sharing bonuses for hourly associates, according to the company.
“We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service,” said Craig Menear, Home Depot chairman, CEO and president. “This incremental investment in our associates was made possible by the new tax reform bill.”
The Home Depot also announced that it estimates the impact of the Tax Cuts and Jobs Act will result in additional net tax expense of approximately $150 million in the fourth quarter of fiscal year 2017, primarily related to taxes on unremitted offshore earnings.
The Atlanta-based home improvement giant said it is still evaluating all the provisions of the tax reform legislation and estimates that the net impact of tax reform on its 2018 tax provision and cash taxes paid will be beneficial