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 North Carolina. (Additions to this list can be sent to email@example.com)
Atlantic Packaging (Wilmington, North Carolina) -- $1,000 bonuses for 1,000 employees:
Atlantic Packaging, one of North Carolina's largest privately held companies, headquartered in Wilmington, announced today that management is awarding $1,000 bonuses immediately to full-time employees. Nearly 1,000 Atlantic employees will receive the bonus payment…
"Our people are what make this organization successful and, though the tax benefit will not come until the end of 2018, we are distributing the bonus dollars now to acknowledge its impact," he said. "The new tax code helps U.S. companies remain healthy and competitive in a global marketplace, and that directly and positively affects the people who work at these companies." -- Jan. 23 2018, Atlantic Packaging press release excerpts
Charlotte Pipe and Foundry Company (Charlotte, North Carolina) -- $1,000 bonuses for all 1,400 employees:
Charlotte Pipe and Foundry joined the growing list of companies to deliver pay bonuses to their employees after the Republican-led tax cut dropped corporate and individual income taxes for most Americans. Charlotte Pipe will give all associates $1,000 each on March 15.
“We are excited to share the benefits of our associates’ diligent efforts, loyalty, and dedication to Charlotte Pipe, and the benefits that will accrue from The Tax Cuts and Jobs Act,” said Roddy Dowd, Jr., CEO of Charlotte Pipe and Foundry. The company is based in Charlotte with seven plants across the U.S. making cast iron and plastic pipe fittings. The majority of their 1,400 employees are in North Carolina. – Jan. 17, 2018 North State Journal article excerpt
The Hammock Source (Greenville, North Carolina) -- all 150 employees received a tax reform bonus of up to $1,000 depending on length of service:
"We at The Hammock Source want to continue to invest in the people that have made our business successful. President Trump’s tax cuts will provide the funds to make this desire a reality. We hope that other business will follow our lead and give back to their employees as well.
Perkins shared that each of The Hammock Source’s employees, including new hires and part time employees, will receive a bonus based on their length of service to the company. The company employs approximately 150 people with over ten percent having twenty or more years tenure with the Perkins Family’s Business." - Jan. 25 2018, Casual Living article excerpt
Tis The Season (West Jefferson, North Carolina) – $1,000 bonuses for full-time employees:
Luther Pitts, owner of Tis The Season, gave his full time employees a big bonus for the holiday season.
Pitts, a resident of Jefferson, gave his two full-time employees $1,000 bonuses in addition to their Christmas bonuses due to the recent tax cuts passed by the United States Congress.
“I like what the president is doing and I’ve done well for myself. Everything I do here is to try and help the county,” Pitts said. “I was trying to inspire other business owners to do something nice for their employees. It may not be $1,000, but something to help the people because the county needs it.”
Pitts said the passage of the tax cuts made his bonuses possible. – Jan. 3, 2018 Ashe Post and Times article excerpt
BB&T (Winston-Salem, North Carolina) – $1,200 bonuses for 27,000 employees; base wage will rise from $12 to $15 per hour; $100 million in charitable donations
“Overall, BB&T's Executive Management team believes the successful passage of tax reform is very encouraging news that should move BB&T, the financial services industry and the U.S. economy in the direction of stronger growth.” – BB&T press release
Benchmark Auto Sales (Asheville, North Carolina) – thanks to tax reform, 100 percent of the staff now has employer-provided health insurance:
A weight many Americans shoulder everyday is now gone for the people who work in gravel lot filled with cars along Brevard Road near the Blue Ridge Parkway.
We're talking health care.
We had 80 percent of our staff was not insured. We have 100 percent insured now. That's a big feat," Benchmark Auto Sales owner Joe Segrave said.
It was Segrave's decision, but he said it would not have happened without the tax bill that finally passed on Capitol Hill.
"I think all of us share a certain level of disgust with what's going on with politics in our nation, and, really, I like to keep this as an apolitical decision," Segrave said. "The bottom line is I had a chance to pay it forward to my employees." – WLOS ABC News 13 report
Old Dominion Freight Line Inc. (Thomasville, North Carolina) – $500 bonuses for all 22,000 employees:
“I am excited to share a bit of good holiday cheer with you today. The President has signed a historic tax reform bill that should reduce OD’s taxes and also generate growth for the U.S. economy. We expect that the anticipated improvement in the economy will create additional opportunities for use to WIN market share and grow our Company more than originally anticipated. As we have said many times before, however, our ability to successfully grow the Company is centered on each member of the OD Family performing at his or her very best to deliver SUPERIOR SERVICE to our customers!
As a way of saying THANK YOU for continuing to deliver best-in-class service, and to share part of our anticipated 2017 tax savings with you, a one-time bonus payment for non-executives will be included in your paycheck this week.” – Old Dominion CEO David Congdon
Bank of America (Charlotte, North Carolina) -- $1,000 bonuses:
“Beginning in 2018, we will see benefits from the tax reform, too, in the form of lower corporate tax rates.
In the spirit of shared success, we intend to pass some of those benefits along immediately. U.S. employees making up to $150,000 per year in total compensation – about 145,000 teammates – will receive a one-time bonus of $1,000 by year-end.” – CEO Brian Moynihan
Duke Energy Carolinas and Duke Energy Progress (Charlotte, North Carolina) – The utilities will pass along tax savings to customers:
Duke Energy today outlined its proposal to pass along savings from the new federal tax law to its North Carolina customers in ways that will lower bills in the near term and help offset increases in the future.
Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) offered the proposal in a filing with the North Carolina Utilities Commission (NCUC) today. Duke Energy has maintained customers' rates significantly below the national average for many decades while providing safe, reliable and increasingly clean energy for North Carolinians.
"This is a unique opportunity that allows us to reduce customer bills in the short term while also helping to offset future rate increases," said David Fountain, Duke Energy's North Carolina president. "With a balanced approach, our customers can benefit from a reduction in the corporate income tax rate, while we continue to make smart investments on behalf of our customers." – Feb. 1, 2018 Duke Energy press release
IAT Insurance Group (Raleigh, North Carolina) -- $3,000 bonuses for 685 non-executive employees:
IAT Insurance Group ownership and management announced today the company will pay
a $3,000 bonus to all non-executive employees on January 15, 2018. The additional bonus comes in response to the newly passed tax reform bill – the tax savings will be shared with approximately 700 employees. IAT Insurance Group is a privately held company owned by the Kellogg family. – Dec. 21 2017, IAT Insurance Group press release
Aquesta Financial Holdings (Cornelius, North Carolina) -- $1,000 bonuses to 95 employees; base wage hike to $15 per hour
"We are very happy to share with our valuable team members some portion of the benefits Aquesta will realize by the enactment of Tax Reform. Decreased tax rates will allow Aquesta Bank to continue to grow by accelerating lending to small businesses and hiring additional team members to help with that growth. While almost all of our employees will also pay lower taxes in 2018 due to this new law, we felt that immediate recognition of their importance to Aquesta would send the right message: our people are what makes Aquesta different." – Dec. 21 2017, Aquesta Financial Holdings press release
Blue Cross and Blue Shield of North Carolina (Durham, North Carolina) – $1,000 bonuses to approximately 4,700 employees; $40 million in charitable contributions:
“North Carolina's largest health insurer said Thursday its windfall from the new federal tax cut will hold down rate increases in the future, but this year it will use it to give charities $40 million and pay employees a $1,000 bonus.
Blue Cross and Blue Shield of North Carolina said it will give away millions this year for health initiatives and give bonuses to about 4,700 employees.” — Feb. 22 2018, Winston-Salem Journal article excerpt
RDR, Inc. A professional services firm headquartered in Centreville, Virginia with a Branch office in Southern Pines, North Carolina and individual employees nationwide is announcing that it will be paying bonuses to each of its 125 employees as a result of anticipated 2018 tax savings from the recently passed Tax Cuts and Jobs act of 2017.
It has been said that all U.S. workers would see financial benefits in February from the tax cuts that passed in December and we are determined to make this true for all our employees right now! – Jan. 19 2018, RDR, Inc. press release excerpts
Ally Financial Inc. (Charlotte, North Carolina) -- $1,000 bonuses:
The company plans to use some of the tax savings to pay a $1,000 bonus to its employees, and to increase its charitable contributions by around $6 million. – Jan. 30, 2018 American Banker article excerpt
Apple (There are five Apple stores in NC: Raleigh, Greensboro, Durham, Charlotte Northlake Mall, Charlotte SouthPark) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 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.
AT&T -- $1,000 bonuses for 6,179 North Carolina employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Cintas Corporation (Multiple locations in North Carolina) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Multiple locations in North Carolina) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Comcast (Multiple locations in North Carolina) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Lowe's -- In NC alone, 24,000 employees at 112 stores and seven distribution centers -- 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.
Lowe’s will follow rival Home Depot in giving thousands of its hourly employees a one-time bonus of up to $1,000 due to new tax legislation, according to an internal company memo reviewed by CNBC on Wednesday.
The bonuses will be based on an employee's length of service with Lowe's, and more than 260,000 part- and full-time individuals are set to receive the payouts, the company said. Lowe's declined to comment on how the bonuses would be broken out based on tenure.
Effective May 1, Lowe's will also be expanding its benefits package for full-time workers to include paid maternity leave for 10 weeks, paid parental leave for two weeks, adoption assistance of up to $5,000, and faster eligibility for health benefits, the memo said.
"We'll continue to make investments to improve the employee and customer experience," Lowe's wrote to its workers.
The company said it will provide more details on those investments in the coming weeks. Lowe's is set to report fourth-quarter earnings Feb. 28. – Jan. 31, 2018 CNBC article excerpt
Starbucks Coffee Company (Multiple locations in North Carolina) –$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 North Carolina) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wal-Mart – 194 locations in North Carolina, Walmart employees are receiving tax reform bonuses of up to $1,000; Nationally, base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.
Wells Fargo – 293 locations in North Carolina; 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 next three years.
Note: If you know of other North Carolina examples, please email John Kartch at firstname.lastname@example.org
The running nationwide list of companies can be found at www.atr.org/list