Home Depot announces employee bonuses, citing tax reform

Home Depot announces employee bonuses, citing tax reform
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Home improvement retailer Home Depot announced on Thursday the company would be giving a one-time cash bonus of up to $1,000, citing the new Republican-backed tax plan. 

"We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service," Craig Menear, the company's chairman, CEO and president, said in a statement. "This incremental investment in our associates was made possible by the new tax reform bill."

According to CNBC, the retailer will use a sliding scale for the bonuses, with six different tiers. 

The $1,000 bonus is for employees who have worked at Home Depot at least 20 years, according to CNBC.

Hourly employees who have worked for the retailer less than two years can expect a $200 bonus. Workers who have been at the company for 10 years to 14 years will get $400.

The bonuses will be doled out in the fourth quarter of fiscal 2017. 

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The retailer also announced a net tax expense of approximately $150 million in the fourth quarter of the fiscal year as a result of tax reform.

The tax plan, which President TrumpDonald John TrumpConservatives express concern over House GOP immigration bill Poll: McSally holds 14-point lead in Arizona GOP Senate primary Trump defends Nielsen amid criticism over family separations MORE signed into law last month, slashes the top corporate tax rate from 35 percent to 21 percent. 

Home Depot is the latest company to announce windfall from the GOP-backed plan. 

Starbucks, Disney and JPMorgan Chase have also announced new raises and benefits for their employees due to tax reform. 

Trump touted the gains in a tweet on Wednesday.  

 Updated at 3:40 p.m.