It’s been 30 days since the Tax Cuts and Jobs Act passed, and companies around the U.S. have already been responding. Because of the corporate tax rate being cut from 35% to 21%, many companies are planning to spend more money—both on employees and investments. We’ve put together a roundup of what some of the biggest companies are doing with their new tax cuts.
The most popular response companies have had to the Tax Cuts and Jobs Act being signed into law is doling out one-time bonuses. Some of these bonuses have already been distributed and some have just been promised. Here’s a look at some of the biggest companies whose employees are on the receiving end of a bonus:
American Airlines - $1,000 bonus to 130,000 employees.
Apple - $2,500 bonus in restricted stock units.
AT&T - $1,000 bonus to more than 200,000 employees. AT&T was the first company to announce bonuses. In fact, they announced their plans before the tax bill was passed.
Bank of America - $1,000 bonus to 145,000 employees.
BB&T Corp. - $1,200 bonus for 75% of associates.
Comcast - $1,000 bonus to more than 100,000 employees. Comcast also announced their plan to give bonuses prior to the tax bill being passed.
Disney - $1,000 bonus to more than 125,000 employees.
Fiat Chrysler - $2,000 bonus to about 60,000 employees.
Fifth Third Bancorp - $1,000 bonus to more than 113,500 employees.
JetBlue - $1,000 bonus to 21,000 employees.
J.P. Morgan Chase - $750 bonus to employees.
PNC Financial Services Group - $1,000 bonus to 47,500 employees.
Southwest Airlines - $1,000 bonus to every full-time and part-time employee.
Starbucks - $500 - $2,000 bonus in the form of stock grants.
U.S. Bancorp - $1,000 bonus to about 60,000 employees.
Walmart - Employees will receive a bonus ranging from $200-$1,000 depending on seniority.
Waste Management - $2,000 bonus to about 34,000 employees.
Increase of Minimum Wage
In addition to offering bonuses, some companies have decided to raise their minimum wage for hourly employees. This list includes:
BB&T Corp. - Minimum wage increased from $12 to $15 per hour.
Fifth Third Bancorp - Minimum wage raised to $15 per hour.
J.P. Morgan Chase - Minimum wage raised to $15-$18 per hour.
PNC Financial Services Group - Minimum wage raised to $15 per hour.
U.S Bancorp - Minimum wage raised to $15 per hour.
Walmart - Minimum wage raised to $11 per hour.
Wells Fargo - Minimum wage increased from $13.50 to $15 per hour.
Several corporations have said they will increase their spending and budget now that they’ll receive tax cuts. Some of the heavy hitters in this category are Apple who will invest more than $30 billion in capital expenditures over the next five years; AT&T who is increasing their capital expenditure budget by $1 billion; and Boeing who will be spending $300 million in investments which include employee training and facility improvement. Disney will also spend $50 million on an employee education program.
Increase Charitable Contributions
Another response that has come out of the new tax law being signed is companies pledging to spend more money on charitable causes. Take a look at the highlights:
AutoNation - Launching a cancer benefit program that provides medical coverage for employees and employees’ spouses and children who are diagnosed with cancer (up to age 26).
BB&T Corp. - Donating $100 million to their philanthropic fund.
Boeing - $100 million for charitable donations.
Commerce Bank - $25 million for charitable donations.
Regions Financial Corporation - $40 million for charitable donations.
Starbucks - Expanding parental leave policy to include adoptive parents.
U.S. Bancorp - Contributing $150 million to the U.S. Bank Foundation, the bank’s charity
Walmart - Creating a new benefit program for employees who are adopting a child.
Wells Fargo - Plans to increase donations to $400 million in 2018. Wells Fargo has also said they will give out more loans to small businesses and mortgages to low-to-moderate income borrowers. Additionally, they will be doubling their contribution to their NeighborhoodLIFT program.
Raising 401(k) Match
Though not as common, some companies have increased their match on employees’ 401(k) contributions. Some of the big companies that are doing this include Aflac, Visa, and AutoNation, but several smaller companies have announced a 401(k) match increase as well.
Overall, there’s been some significant change in the last month. In total, more than 2 million U.S. workers will receive a bonus and some will see raises. You can use this calculator to see how the new tax law will affect you or your clients’ paychecks.
What changes have you experienced since the Tax Cuts and Jobs Act passed in December? Comment below.
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