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FIGURE 4
Tax Plan Give-backs
TAX PLANRELATED VARIOUS TYPES OF GIVEBACKS
EMPLOYEE GIVEBACKS ANNOUNCED BY COMPANIES
CASH BONUS To date, cash bonuses are the most popular award given to workers, in part due to the
timing of tax plan resolution (around Christmas) and 1st Q ’18 tax incentives for
companies issuing the benefit. $1,000 gifts are most prominent; however, awards vary
greatly from $3,000 lump-sums to seniority-based issues (e.g., $100 to $1,000 awarded
for each year of an employee’s company service). Awards such as these are discre-
tionary and may or may not be issued annually; however, recipient testimonials are
strong and appreciative (even knowing it may be a one-time gratuity). Beneficiaries
(many of whom have never been given bonuses in their careers) are saying they’re
using funds for everything from paying bills, buying wellness memberships, using
funds to help purchase cars, going back to school, taking a vacation, giving to charity,
to simply doing the lile things (like going out to dinner and helping their families).
OTHER BONUS Some companies have announced increasing bonuses over any rewards through
ADJUSTMENTS pre-existing plans. These add-on stipends are generally sustainable as most corporate
bonus and incentive plans factor profit metrics into the formulas. Based on Tax Plan
reductions (allowing for greater profit potentials), these types of rewards are more
likely to be issued year-after-year. Others have announced one-time variants (such as
a discretionary doubling of bonuses) for 2018.
COMPANYWIDE Many companies, mostly financial-related, are introducing company minimum wages.
MINIMUM WAGE At present, these range from a low of $11/hour (Walmart) to $15/hour.
BASEWAGE Gaining momentum are companies revealing general increases, across-the-board, flat
& SALARY INCREASES dollar/hour increases, merit, performance and incentive-based compensation being
added to employee’s regular base wage. As adopted, these awards and corporate
mind-set are staged more strategically to improve their competitive wage position along
with the general welfare of their workforce. Propositions that add compensation to the
base wage tend to carry over, impacting all future increases and decisions. Companies
that are wage leaders are generally not following this practice (as they don’t need to);
however, those feeling it’s a chance to improve their relative position are citing this as a
vehicle to elevate measurable competitive wage averages and real wage growth.
STOCK For those publicly traded organizations, tax-based stock incentive give-backs are
appearing fashionable; as it tends to increase sta retention (binding employees
through some future option price or vesting), is generally expense-deferred, and
creates more ownership values and vested interest into the success of company. Stock
issues do vary from flat share awards (with no stipulations toward exercising shares)
to time-based options issued with a predetermined future-stock value.
INCREASED COMPANY Practicality and creativity co-exist, with a host of varied and wide-spread awards being
CONTRIBUTIONS announced (mostly sustainable policy-based). A few of these include:
401K, PROFIT
SHARING AND/OR • Increased company contributions to 401(k) or pensions
PENSION • Defined profit-sharing disbursements
• Increased budgets and resources for formal worker education and training
• Added vacation days
• Tuition plans
• Increased company contributions to medical and other insurance premiums
• Upgrades to workplace facilities, technology, and equipment
• Introduction of new benefits (traditional, e.g., dental plans, and non-traditional, e.g.,
wellness plans, gym memberships, child care services and subsidies)
• Matching charitable contributions
• Increased hiring levels
Source: Americans for Tax Reform, www.atr.org
36 | NSAA JOURNAL | SPRING 2018
