Minnesota Banks Dish Out Bonuses, Wage Hikes After New Tax Bill

Two of Minnesota's largest banks are promising to give out additional employee bonuses and increase donations to nonprofit organizations as a result of the new federal tax reform law. Wayzata-based TCF Bank and Minneapolis-based U.S. Bank are the latest corporations to announce new worker benefits as a result of the law that gives corporations a massive permanent tax cut from 35 percent down to 21 percent.

U.S. Bank said it will also raise its minimum wage to $15 for all hourly employees and finalized the following moves:

• A special $1,000 bonus for nearly 60,000 employees;
• A one-time $150 million contribution to the U.S. Bank Foundation;
• Enhancements to employees' health care offerings effective for the 2019 enrollment period; and
• An additional investment in strategic projects centered on the customer experience with an emphasis on digital and mobile capabilities.

"We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers," Andy Cecere, President and Chief Executive Officer of U.S. Bancorp, said in a statement. "We are proud of our people and their commitment to our customers and communities. We felt it was important to reward their hard work and dedication with this special bonus, the minimum wage increase and the health care enhancements."

TCF said as a result of the tax bill, it will provide approximately $5 million in one-time bonuses to eligible team members and will donate $5 million to the TCF Foundation "to increase grants to nonprofit organizations in the communities it serves."

Based on preliminary analysis, TCF expects to record a one-time net tax benefit between $120 million and $140 million.

Read more about the nitty gritty details of the tax bill here.

Photo credit: AP Photo/Ann Heisenfelt, File