Federal tax cuts enable some NJ companies to reward employees

Posted: Updated:

Some New Jersey companies say that they are giving their employees bonuses due to anticipated saves from the federal tax cut recently passed by Congress.

Flemington Car and Truck Country owner Steve Kalafer says that his employees are receiving a $500 bonus.

“What we’re doing is not altruistic. It’s realistic,” he says. “When you’re sending less money to Washington D.C., and you can reward your employees. It’s a very simple business decision.”

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Kalafer says that he employs 700 workers. Those who have been on the job for a least a year are eligible for the bonus.

Several major companies announced bonuses for their employees as a result of the federal tax reform. Walmart officials said this week that the company will raise its starting salary to $11 an hour and give bonuses of up to $1,000.

But the company also announced that it would close more than 60 Sam’s Club stores, including three in New Jersey.

Rutgers employment expert Heather McKay says that she believes that while some benefits may be passed on to workers, large companies will reap most of the rewards.

“With Walmart doing this today and other companies doing this, they are saving more than they are spending,” she says. “Walmart is going to spend millions, but they’re going to save billions and get back billions with these tax breaks.”

Kalafer says that he believes that the tax cut is a means to not only reward employees, but to also to reinvest in his business.

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