The Home Depot is the latest U.S. corporation to announce bonuses for its employees as a result of the Republican tax reform that passed in December and takes effect in February.
“We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service,” Craig Menear, chairman, CEO and president of Home Depot, said in a statement released Thursday morning. “This incremental investment in our associates was made possible by the new tax reform bill.”
The home improvement company’s 400,000 employees can expect a one-time bonus of up to $1,000 during the fourth quarter, which will conclude Jan. 31.
Employees who have been with the company more than 20 years will receive the full $1,000 bonus. Workers of 15 to 19 years will take home $750 while those of 10 to 14 years will receive $400, according to a report.
Workers of five to nine years will get $300, two- to four-year employees will pocket $250, and new hires to those who have been with the company for less than two years will receive a $200 bonus.
Home Depot estimated the new law will “result in additional net tax expense of approximately $150 million in the fourth quarter of fiscal 2017 primarily related to taxes on unremitted offshore earnings.” The company said it expects to benefit financially in 2018 from the changes to the tax code.
The company reported $95 billion in sales and $8 billion of earnings in fiscal year 2016.
On Wednesday, Starbucks announced a $250 million investment in employee benefits, including $120 toward raises for its workers.
