Tax-Reform Dilemma: Is Now the Time for Employers to Act?

company culture

Is now the time to act?

According to a new survey, that's the question many employers have been asking themselves since tax reform came to town.

With the Tax Cuts and Jobs Act of 2017, the corporate rate has gone from 35 percent to 21 percent, generating unexpected capital for many companies, and new opportunities for using it. Of 300 companies recently surveyed by Pearl Meyer, about 20 percent have taken action with some sort of employee benefit; another 30 percent are considering it. Roughly half aren't sure, many because they don't expect the new codes to affect them.

Long-Term Dividends

The survey nods to the complicated times, and the question of how to respond to changing laws. High-profile overtures may be much in the news (in the last two months, just over 150 employers have made headlines with one-time payouts to employees). But are such headline-making actions short-term rewards, or long-term strategies?

Horizons Workforce Consulting's Jennifer Vena, who will be conducting a survey of business leaders about their plans, says employers should approach this as they would any other decision: consider the goals you want to achieve and respond accordingly.

"To get the most out of it," says Jennifer, whose study will provide insight about industry trends, "any reinvestment in the workforce will need to be intentionally created to improve the employee experience. Such actions will pay dividends far beyond the brand exposure."

Written by: Jonathan Corke

May 15, 2020

About the Author

Jonathan Corke at Bright Horizons

As Senior Director, Product Marketing, Jonathan has spent over a decade at the intersection of HR strategy and employee benefits. Working alongside HR leaders and total rewards experts, he focuses on the success factors that help convert a leader’s vision into an impactful program. An active participant in the HR community, Jonathan has led presentations and workshops at numerous industry events and is a regular contributor to the Bright Horizons Solutions at Work blog. He holds an MBA from Clark University.