Around 34,000 Waste Management employees will be waking up with a smile on their face today. What is it that they are so excited about? Just the fact that their company has announced that they will be giving out $2,000 bonuses to select employees due to the recent passage of the tax reform bill says CNBC.
Who Gets The Cash?
Not every single Waste Management employee qualifies for this special bonus, but many of them do. The person has to be someone who does not work on a sales incentive or other bonus scale already. Salaried and hourly workers do qualify for the cash bonus.
It is important to remember that this is a one-time cash bonus of $2,000 that the company is offering to its employees. Many of those employees are sure to be happy with the fact that they are receiving such an incentive, but it is important to realize that this is a one-time thing at the moment.
Following The Trend
Part of what Waste Management is doing here is following the trend of many other large companies in giving out cash bonuses to their employees as a result of the passage of the tax bill.
The companies are extremely happy that the top marginally corporate tax rate has been slashed from 35% to 21%. It is something that is going to save them enormous amounts of money. The fact that they are showing a little of that money down on their employees will probably help keep those employees happy with the situation as well. If that is the case, then perhaps the corporates will be able to push for even more tax reforms going forward.
Why The Company Is Doing This
The prospect of the company on why they are doing this according to their CEO Jim Fish is that they want to pass along some of the benefits that they have received as a company on to their employees. They figure that the best way to do this is to literally give over some cash that they will be receiving in the form of a tax break themselves. With that, they can help more employees receive larger than expected bonuses during this time of year. That might be just what those employees need in order to both like the tax reform bill that has been passed as well as like their employer for helping them out.