Home Depot to give one-time bonus to hourly employees
The Home Depot is rewarding its hourly associates in the wake of the passage of the new tax law.
The retailer plans to provide a one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017. The bonus is in addition to the chain’s “success sharing” bonuses for hourly associates.
Similar to Walmart, the amount of the bonus will be on a sliding scale determined by how many years the associate has worked at Home Depot, a maximum payout of $1,000 for employees with 20 years of service, according to CNBC. Those with less than two years of service will receive $200, the report said.
"We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service," said Craig Menear, chairman, CEO and president. "This incremental investment in our associates was made possible by the new tax reform bill."
Home Depot currently estimates that the impact of the tax act will result in additional net tax expense of approximately $150 million in its fourth quarter, primarily related to taxes on offshore earnings. This charge, coupled with the one-time bonus payment, is expected to negatively impact the company's previously provided fiscal 2017 diluted earnings-per-share guidance by approximately $0.19.
The company said that, for fiscal 2018, it is still evaluating the provisions of the tax legislation and currently estimates that the net impact of tax reform on its 2018 tax provision and cash taxes paid will be beneficial. Citing the changing retail environment, Home Depot intends to invest in its associates, its stores and the customer experience.
The retailer plans to provide a one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017. The bonus is in addition to the chain’s “success sharing” bonuses for hourly associates.
Similar to Walmart, the amount of the bonus will be on a sliding scale determined by how many years the associate has worked at Home Depot, a maximum payout of $1,000 for employees with 20 years of service, according to CNBC. Those with less than two years of service will receive $200, the report said.
"We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service," said Craig Menear, chairman, CEO and president. "This incremental investment in our associates was made possible by the new tax reform bill."
Home Depot currently estimates that the impact of the tax act will result in additional net tax expense of approximately $150 million in its fourth quarter, primarily related to taxes on offshore earnings. This charge, coupled with the one-time bonus payment, is expected to negatively impact the company's previously provided fiscal 2017 diluted earnings-per-share guidance by approximately $0.19.
The company said that, for fiscal 2018, it is still evaluating the provisions of the tax legislation and currently estimates that the net impact of tax reform on its 2018 tax provision and cash taxes paid will be beneficial. Citing the changing retail environment, Home Depot intends to invest in its associates, its stores and the customer experience.