Thanks to the Tax Cuts and Jobs Act passed by the Republican congress and signed by President Donald Trump, 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 Indiana. (Additions to this list can be sent to firstname.lastname@example.org)
Family Express (Valparaiso, Indiana) -- Base wage raised to $11 per hour:
Valparaiso-based Family Express, which has 70 convenience stores across Indiana and is in the process of building 10 more, is bumping its starting wage to $11 an hour.
The 43-year-old convenience store chain is raising entry-level pay by $1 an hour, after pre-empting national retailers like Walmart with above-market starting wages in April 2015. Family Express said it was boosting pay because of the tax cuts that reduced the corporate tax rate from 35 percent to 21 percent and as a bid to recruit quality employees and reduce turnover.
“We feel obligated to pass on a significant portion of the tax savings to our staff," Family Express President and CEO Gus Olympidis said. -- Feb. 5 The Times of Northwest Indiana article excerpt
Northern Indiana Public Service Company (Merrillville, Indiana) – the utility requested that customers’ natural gas rates be lowered:
As a result of the newly enacted federal tax reform, NIPSCO submitted a request with the Indiana Utility Regulatory Commission (IURC) to lower its previous request to modify natural gas base rates by $26 million. The reduction means natural gas residential customers would pay nearly $2 less per month following the Commissions’ decision in the company’s natural gas rate proposal, which is expected in the second half of 2018. The average natural gas residential customer paying $50 per month is projected to see their bill go to $58.10 per month, subject to IURC approval, rather than $59.80 as originally proposed. Electric rate benefits from federal tax reform are being considered and reviewed separately. NIPSCO’s original proposal, which was made last September, is four months into a formal regulatory review process, which includes opportunities for public input and involvement. According to the IURC’s monthly residential bill comparisons, NIPSCO is currently the lowest natural gas cost provider in Indiana.”
AndyMark, Inc. (Kokomo, Indiana) – This mechanical and electrical parts supplier will be able to expand the business and hire more employees thanks to tax reform:
Andy Moser, president and owner of AndyMark, which operates from a facility on North Washington Street and manufactures and distributes mechanical and electrical parts for the competitive robotics market, said savings from the tax cut has accelerated his plans to hire more workers.
He said the company currently employs 25 full-time workers and up to 30 part-time and seasonal workers. Now, Moser anticipates doubling his workforce in the next five to 10 years.
“I think the tax bill is going to accelerate our growth,” he said. “We want more diversity with our business and more vertical integration, which requires more staff, and the tax cut its going to accelerate all that.” – Jan. 14 2018, Kokomo Tribune article excerpt
1st Source Corporation (South Bend, Indiana) -- 10 shares of stock; base pay increases:
1st Source Corporation announces important investments in its people as a result of record performance in 2017 and new tax legislation opportunities. These new investments include the following:
- The issuance of 10 shares of 1st Source stock currently valued at $500.00 in early 2019 (which must be held for three years) to all employees who were active with the company December 31, 2017 and are also active with the company on December 31, 2018.
- An additional performance award base pay increase of $500.00 to eligible colleagues.
- A significant increase in the company's higher education tuition reimbursement program to an annual benefit of $6,000 from $3,000.
Christopher J. Murphy III, Chairman and CEO stated. "We believe in shared ownership among all our colleagues at 1st Source. We also believe the new tax act gives us additional funds to invest in the company's long term future. -- Jan. 31, 2018 1st Source Corporation
First Farmers Bank & Trust (Converse, Indiana) – minimum bonus of $750 to each full time employee; base wage will rise by $2.50 per hour:
In response to the recently passed legislation affecting corporate tax, Gene Miles, President and CEO of First Farmers Bank & Trust recently announced a new corporate wage and community support program that commits to four points of emphasis.
1. Raise the minimum hourly starting wage by $2.50 for all new FFBT employees.
2. Provide a minimum year-end bonus of $750 annually to all full time FFBT employees.
3. Invest a minimum of $250,000 annually to community development and support of local branch markets.
4. Invest a minimum of $150,000 annually to FFBT employee development and education.
“With this special opportunity, we are pleased to further our commitment to our community and to our people. Since 1885, First Farmers has prided itself in supporting the communities in which we serve and our employees are the primary reason for our corporate success and growth”, Gene Miles, President and CEO, First Farmers Bank & Trust. – First Farmers Bank & Trust statement
First Merchants Corporation (Muncie, Indiana) – $1 per hour wage increase for hourly employees; $500 bonuses for full-time employees, excluding senior management; pro-rated bonus for part-time employees:
First Merchants Corporation (NASDAQ:FRME) announced today that it will raise the wage paid to hourly employees by $1 per hour as a result of the Tax Cuts and Jobs Act of 2017 signed by President Trump in Dec. 2017.
Additionally, as a reward for the company’s strong 2017 performance, all associates, excluding senior management, will receive a $500 one-time cash bonus. Part-time associates will receive a pro-rated share.
The compensation investments will impact nearly 90 percent of First Merchants’ 1,700 employees and will be in addition to the company’s existing incentive programs and annual merit increases.
“My colleagues at First Merchants provide superior service to our clients and devote themselves to the communities we serve every day,” said First Merchants President and CEO Michael C. Rechin. “We are proud to share the savings provided by the tax reform package to reward their hard work and dedication with an increase in compensation.” – Jan. 16, 2018 First Merchants Corporation press release
MainSource Financial Group (Greensburg, Indiana) – Base wage raised to $15 per hour:
MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.
Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release
Mutual Bank (Muncie, Indiana) -- $750 bonuses for all non-executive employees; hourly employees will also receive a $.50 pay raise per hour:
CEO Dave Heeter said,” When an event like this occurs, a significant consideration is determining if the increased earnings resulting from the reduction in taxes, should be shared with a company’s constituents.” Heeter continues, “In the anticipation that the change in the tax law will provide an opportunity for greater earnings moving forward, we feel that sharing a portion of those earnings with our outstanding staff is appropriate.”
In the first quarter of 2018, MutualBank will distribute a $750 one-time payment for all full-time and part-time employees except for the Executive Management Team. Additionally, all non-exempt employees will receive a $0.50 increase in their hourly wage. -- Jan. 20, 2018 MutualBank press release
Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth. Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.
Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees.
Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.
“It is good for our communities, employees and Fifth Third Bank,” [President and CEO Greg] Carmichael said. – Fifth Third press release
First Financial Bancorp (Nasdaq: FFBC) will raise the starting wage for all new and existing hourly associates to $15 an hour effective immediately. Additionally, the bank has made a $3 million contribution to its newly established charitable foundation. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
First Financial strives to provide fair and competitive salaries and benefits to its associates. Approximately 1,335 associates are employed throughout the First Financial footprint in Ohio, Indiana and Kentucky. The increase will affect 220 of these associates. – Jan. 3, 2018 First Financial Bancorp press release
Centaur Gaming is reinvesting some of the money it will be saving under the Tax Cuts and Jobs Act back into its employees by giving them a $500 bonus.
The president of the company, Jim Brown, announced at a meeting Wednesday morning that all full, part and seasonal employees would be receiving a one-time check for $500. The company will also be paying all taxes and the employee and company 401K portions of those bonus checks. – March 7 2018, WRTV article excerpt
FedEx (Multiple locations in Indiana) FedEx is investing $1.5 billion to expand the FedEx Express Indianapolis hub. Nationwide, FedEx committed more than $3.2 billion in wage increases, bonuses, pension funding due to the tax cuts. Pay raises, bonus increases, pension plan increases, and at least $1.5 billion in capital expenditures:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States.
The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017 as a result of these actions.” – Jan. 26 2018, FedEx press release
OneMain Holdings, Inc. (Evansville, Indiana) – Bonuses and base wage increases:
OneMain Holdings Inc. will use part of its savings from the reduction in the federal corporate tax rate to raise its minimum wage for employees and provide a special bonus, President and CEO Jay Levine said. – Feb. 16, 2018 SNL Financial Services Daily article excerpt
Muncie Aviation Company (Muncie, Indiana) – Tax reform bonuses for all employees:
Muncie Aviation Company will pay a bonus to all employees during the first week of March, "due in part to the Trump (Tax Cuts and Jobs Act of 2017) and in part to the record economic results posted by the company for 2017," the company announced this week.
"The company believes that the favorable business climate will increase opportunities in the coming years," a release stated. A reception for the employees/owners will be held immediately after the awarding of the bonus at Merk's restaurant, which is located in Muncie Aviation's administrative building at the Delaware County Regional Airport.
The company employs 55 full-time and eight part-time people. – March 2, 2018 Star Press article excerpts
AT&T -- $1,000 bonuses to 3,888 Indiana employees; Nationwide, $1 billion increase in capital expenditures.
Apple (Apple store locations in Indianapolis and Mishawaka) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $30 billion in additional capital expenditures.
Bank of America (Multiple locations in Indiana) -- Indiana-based employees of Bank of America will receive $1,000 bonuses.
Cintas Corporation (Multiple locations in Indiana) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.
Comcast (Multiple locations in Indiana) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Home Depot -- 24 locations in Indiana, bonuses for all hourly employees, up to $1,000
Lowe's -- 8,000 employees at 44 stores and two distribution centers in Indiana. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Starbucks Coffee Company (Multiple locations in Indiana) – $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 Indiana) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wal-Mart – 104 locations in Indiana -- 25,000 Indiana Walmart employees are receiving tax reform bonuses. Nationally, base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.
Wells Fargo – 33 bank locations in Indiana; raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three year
Note: If you know of other Indiana examples, please email John Kartch at email@example.com
The running nationwide list of companies can be found at www.atr.org/list