Thanks to the Tax Cuts and Jobs Act passed by the Republican congress and signed by President Donald Trump, 90 percent of wage earners have higher take-home pay. And companies of all sizes are already giving bonuses and raises and expanding the scope of their operations.
Below are several examples of tax reform good news in Alabama. (Additions to this list can be sent to firstname.lastname@example.org)
Overseas Hardwoods Company (Stockton, Alabama) -- $1,000 tax reform bonuses to employees.
Cogent Building Group (Point Clear, Alabama) – $2,000 bonuses for all four employees.
American Proteins Inc. (Hanceville, Alabama)— $1,000 bonuses:
“American Proteins Inc. based in Cumming has 700 employees at its operations in Georgia and Alabama. It announced it would give employees $1,000 bonuses "in response to the tax reform package signed into law earlier this year."
"President Donald Trump and the Republican Congress have reduced taxes for businesses and individuals and I'm excited what this means for our company and its employees," American Proteins Inc. Chairman Tommy Bagwell said in a statement Feb. 5.” – Feb. 26 2018, Atlanta Business Chronicle article excerpt
Otelco (Oneonta, Alabama) — $500 bonuses for all employees:
The Tax Cut and Jobs Act, enacted in December 2017, affects Otelco’s taxes in 2017, as well as future tax years. Bonus depreciation was increased from 50% to 100%, beginning in 2017, with the Company realizing a benefit of over $0.6 million in fourth quarter 2017. The reduced maximum tax rate has also lowered the Company’s deferred tax liabilities and is reflected in an income tax benefit, raising net income for the quarter and year. “We recently announced to our employees that everyone would be receiving a special bonus of $500,” commented Rob Souza, President and CEO of Otelco. “Coupled with the lower tax withholding rate that most employees should experience, everyone should start 2018 with more take home pay. — March 5, 2018 Otelco statement
Protective Life Corporation (Birmingham, Alabama) -- Base wage raised to $15 per hour; $1,000 bonuses for 75% of employees:
Recognizing the benefits it will receive as a result of the recent passage of federal tax reform, Protective has committed to:
- Paying a special $1,000 bonus to approximately 75% of its employees
- Establishing a minimum wage across its employee base of $15/hour -- Feb. 13, 2018 Protective Life Corporation statement
Russell Lands (Alexander City, Alabama) -- $500 bonuses for about 400 full-time non-management staff:
Russell Lands, the largest lakeside residential developer in the state, has given full-time employees a $500 check.
“We are thrilled that our company is strong, the economy is good, and that our national leaders recently approved a tax plan that should be very positive for all of us,” said Chairman Ben Russell. “This is a token of the company’s, and my personal, genuine appreciation for what our folks have done to make Russell Lands such a great company. It’s because of our employees’ efforts that we have been able to accomplish so much."
Non-management-level employees who had been with the company since July 1 were given the checks this week – almost 400 in all. – Jan. 12 2018, Birmingham Business Journal article excerpt
Regions Financial Corporation (Birmingham, Alabama) – base wage increase to $15 per hour; $40 million in charitable donations; $100 million in capital expenditures:
“Regions is making these investments in anticipation of the savings it will recognize as a result of federal tax reform intended to support economic growth.” – Regions Financial Corporation press release
DTI Partners Inc. (Mobile, Alabama) -- $1,000 bonus to full-time employees; $300 bonus to part-time employees:
“The tax bill was the primary reason we were able to do this as a company. The bonuses were a great morale booster. We are a very small company but we believe this will help us grow in the long run.” -- Message from CEO Tom Busby
Xante Corporation (Mobile, Alabama) -- $1,200 bonuses:
Mobile-based Xante Corp. handed out $1,200 bonus checks to most of its employees on Monday, as its CEO gave thanks to a Republican tax reform bill and Rep. Bradley Byrne.
Xante provides high-end printers and related software for use by professional graphics and printing operations. It employs a little over 100 people in Mobile and about 15 more in Europe. CEO Robert Ross said Monday that anyone who'd been with the company for a year or more was getting a $1,200 bonus, while those employed less than a year were getting a different amount.
Mobile employees whooped and cheered as Ross announced the windfall Monday morning. They also heard Ross explain that the company had additional plans for money saved as a result of tax cuts passed by Congress and signed into law by President Donald Trump in December. Among other changes, the tax bill significantly lowered the corporate tax rate. – Feb. 19, 2018 AL.com article excerpt
AT&T -- 5,071 Alabama-based AT&T employees received $1,000 bonuses. The company also announced a $1 billion increase in nationwide capital expenditures.
Walmart – 144 retail locations in Alabama -- Over 22,000 Alabama-based Walmart and Sam's Club employees are receiving wage increases as well as tax reform bonuses ranging from $200 - $1,000 for a state total of $37,111,483. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave and $5,000 for adoption expenses.
Apple (Apple store locations in Birmingham and Huntsville) -- Alabama-based Apple employees received $2,500 bonuses in the form of restricted stock units. Nationally, $30 billion in additional capital expenditures; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
BancorpSouth Bank (30 branch locations in Alabama) – pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees:
BancorpSouth Bank today announced an additional investment in its employees, which includes pay increases and /or one-time bonuses to nearly all non-commissioned employees.
The investment of over $10 million in 2018 will benefit 96% of the Company's non-commissioned workforce. Pay increases were effective January 1, 2018.
"We are proud to reward our team with this opportunity since the Tax Cuts and Jobs Act should benefit everyone" said Dan Rollins, Chairman and CEO. "BancorpSouth's continued and future success is based on the economic vitality of the communities we serve and taking care of our teammates allows us to provide the very best service to our customers, communities and shareholders." – Jan. 3, 2018 BancorpSouth Bank press release
The increased compensation overall at BancorpSouth affected more than 70 percent of all employees, and provided a $1,000 bonus to nearly 20 percent of all employees.
BancorpSouth employs some 4,000 employees in more than 230 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, plus an insurance location in Illinois. – Jan. 4, 2018 Daily Journal/BizBuzz article
"This incremental investment in our associates was made possible by the new tax reform bill." -- Jan. 25, 2018 Home Depot press release
Comcast (Multiple locations in Alabama) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Alabama) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Starbucks Coffee Company (Multiple locations in Alabama) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul (Multiple locations in Alabama) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wells Fargo – 125 bank locations in Alabama; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Alabama examples, please email John Kartch at email@example.com
The running nationwide list of companies can be found at www.atr.org/list