Missouri companies are using tax savings to invest in employees and capital
Thanks to the Tax Cuts and Jobs Act passed by Congress and signed by President Donald Trump, companies of all sizes are already giving out bonuses and raises and expanding the scope of their operations. Many companies in Missouri are putting their bonuses to work improving their employees lives, as well as the economy.
As part of the Tax Cut and Jobs Act passed in December, Cerner posted an income boost driven mostly by its reevaluated deferred tax liability. The reduction will be used to fund research and development, including the next phase of its $4.5 billion Innovations Campus and the hiring of 600 local employees for its Works business, the Kansas City Business Journal reports.
Time reported AT&T announced it would give $1,000 bonuses to more than 200,000 employees in the U.S. (8,253 in Missouri) once the tax bill is signed into law and promised to invest an additional $1 billion in capital expenditures in the U.S. in 2018. CEO Randall Stephenson praised the tax legislation as “a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world.”
Boeing announced that it would spend $300 million on “employee-related and charitable investments” because of the tax plan. “The reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth,” CEO Dennis Muilenburg said in a statement.
The Americans for Tort Reform website showed additional great results from other Missouri companies.
Mid-AM Metal Forming announced bonuses for 140 employees.
Iron Horse Energy Services Inc. announced bonuses for all 93 employees; due to a lower tax burden the company is also continuing to cover 100 percent of healthcare.
Dynamic Fastener announced employee bonuses of up to $1,000; the company will also open a paint shop, buy new equipment and hire more employees.
Hostess Brands, Inc. announced $750 cash bonuses, $500 in 401(k) contributions, and free snacks for a year for employees.
Kansas City Power and Light (KCP&L) said in a press release the company will pass savings from federal tax reform to customers. KCP&L announced its intention to file rate update cases with the Kansas Corporation Commission (KCC) and the Missouri Public Service Commission (MPSC) to pass approximately $100 million in annual tax savings to customers, resulting from federal tax cost reductions. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018. KCP&L is committed to passing 100 percent of the benefit from this tax cut on to customers.
“We commend both the KCC and the MPSC for already initiating a process to review the impact of the federal tax reduction,” said Terry Bassham, President and CEO of KCP&L. “The federal tax cut has significant benefits which should be passed on to our customers in full. We look forward to working with our regulators and stakeholders on the best way to do that.”
The full impact of this tax change will take several months to determine, as any proposed change to customer rates requires the approval of the KCC and MPSC. In addition, in determining how the tax reduction will impact rates, the company will request that regulators review and update all costs necessary to serve its customers.
Kansas City Southern announced $1,000 bonuses. (Exact number receiving bonus unknown at this time; the company employs 6,485).
Bank of Advance gave $1,000 bonuses to all staff.
Central Bancompany, Inc. announced bonuses to 2,500 employees: $1,000 bonuses for full time employees; $500 bonuses for part time employees.
College of the Ozarks gave out $204 bonuses for employees.
Commerce Bancshares, Inc. will be giving 3,450 employees bonuses — $1,000 for full time employees and $250 for part time employees plus, $25 million in charitable donations.
Great Southern Bancorp, Inc. announced 1,200 employees will receive a bonus: full time employees receive $1,000 and part time employees receive $500.
Hawthorn gave $1,000 bonuses for full-time employees and $500 bonuses for part-time employees.
Lowes is offering employees bonuses of up to $1,000 based on length of service, expanded benefits and maternity/parental leave; and $5,000 of adoption assistance.
Stifel Financial Corporation has announced $1,500 bonuses for 7,000 employees.
Most of the 5,800 Missourians employed at Tyson Food Inc. will receive tax reform bonuses; $500 bonuses for part-time employees, $1,000 bonuses for full-time employees this week.
BancorpSouth Bank will have pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees.
Apple will have $2,500 employee bonuses in the form of restricted stock units; nationally, $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.
Bank of America will give out $1,000 bonuses.
Chipotle Mexican Grill will have bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Cintas Corporation announced $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.
CVS Health raised its base wage to $11 per hour, and other pay ranges adjusted accordingly; company will absorb increases costs of health insurance premiums; creation of new parental leave program.
Comcast will have $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Home Depot announced bonuses for all hourly employees, up to $1,000.
Ryder will have tax reform bonuses for employees totaling $23 million nationwide.
Starbucks Coffee Company announced $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants, totaling more than $100 million in stock grants nationwide; 8,000 new retail jobs and 500 new manufacturing jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul will give $1,200 bonuses for full-time employees and $500 for part-time employees.
Waste Management, Inc. announced $2,000 bonuses.
Anthem announced $1,000 in extra 401(k) contributions for 58,000 employees.
25,700 Missourians employed at Walmart will receive tax reform bonuses and wage increases and expanded maternity and parental leave. Walmart employees who adopt children will be given $5000 to help cover expenses.