This post is was originally published on The Penny Hoarder
Last week, Hostess Brands became the latest company to announce bonuses for its employees in response to the new tax law.
But Hostess is the first to offer free Twinkies.
That’s right, on top of a cash bonus, the company will give each of its employees a free supply of its products for a whole year.
Can you imagine? All the Ho Hos and Ding Dongs you can eat! It’s a good thing I don’t work for Hostess, because I have basically zero self control when it comes to snacks.
Hostess Brands is just one of many companies that has announced bonuses in the past month. Some aren’t just giving out bonuses but are raising wages, as well.
The reason for this sudden influx of raises and bonuses is being largely attributed to the recent tax overhaul. Under the new tax bill, corporate tax rate will drop from 35% to 21%.
Here’s a sample of some of the companies that are getting a tax cut and sharing a portion in the form of bonuses, pay raises, and other benefits.
These Companies are Giving Out Tax Reform Bonuses
We already mentioned the free sugar rush Hostess Brands is handing out, but employees will also receive a cash bonus and a 401(k) contribution.
- One-time $750 cash bonuses
- $500 in 401(k) contributions
- A year’s worth of free products, provided in a multi-pack once a week
- Bonuses up to $1,000, depending on length of employment
- Minimum wage raised from $10 an hour to $11 an hour for all hourly employees
- 10 weeks of full-pay maternity leave, up from eight weeks
- Financial assistance for employees looking to adopt a child
This news came on the same day as the sudden closings of 63 Sam’s Club stores across the nation.
Wells Fargo & Co. chose to raise minimum wage, a change that will go into effect in March. The company also increased its charitable donations for the year.
- Minimum wage raised to $15 an hour, up from $13.50
- Plans to spend $400 million in 2018 on philanthropic spending, up 40% from 2017
Fifth Third Bancorp
Fifth Third Bancorp was another company that chose to not only give out one-time bonuses but also bump up its minimum wage.
- Minimum wage raised to $15 an hour, affecting nearly 3,000 employees
- $1,000 one-time bonuses distributed to more than 13,500 employees
Bank of America
Another bank, another bonus. Roughly 145,000 Bank of America employees received a bonus in response to the new tax reform.
- $1,000 one-time bonus for employees earning under $150,000
Are you seeing a trend here? U.S. Bancorp announced that roughly 60,000 of its employees would receive a one-time bonus and decided to raise entry-level pay.
- One-time $1,000 bonuses
- Minimum wage raised to $15 an hour for all hourly employees
- $150 million donation the U.S. Bank Foundation
The bank also announced plans to improve its employee health coverage options, but this won’t be in effect until the 2019 enrollment period.
This is the last bank on the list, I promise.
About 90% of the financial services employees saw a cash bonus in the first quarter of 2018, coming out to around 47,500 employees.
- One-time bonus of $1,000
- Raised minimum wage to $15 an hour
- $200 million contribution to the PNC Foundation.
The company behind the happiest place on earth also joined the post-tax reform bonus party, dishing out bonuses to over 125,000 employees.
- One-time $1,000 cash bonus for all part-time and full-time, non-executive employees
- $50 million investment in a college tuition program that benefits hourly employees
Not only is Starbucks raising wages for its 150,000 employees, it is also giving out bonuses.
But these bonuses are a little bit different than those of other companies. Rather than giving out one-time cash bonuses, Starbucks employees will receive stock bonuses.
- Stock grants starting at $500 for hourly retail workers
- Stock grants of $2,000 for store managers
- Raising wages (will vary by region)
The Seattle-based company plans to spend over $250 million on the raised wages.
AT&T didn’t decide to raise wages in response to the tax reform, but the company did decide to hand out bonuses to 200,000 of its employees.
- One-time cash bonus of $1,000 to union represented, non-management employees
This is just a sample of major U.S. companies that have responded to the new tax bill with raised wages or bonuses.
Other major corporations include American Airlines, Comcast, Fiat Chrysler, Verizon and more. You can check out a more extensive list here.
Kaitlyn Blount is a junior staff writer at The Penny Hoarder.