At least one Maine company is passing on to its employees some of the money it is saving under the recently adopted Republican tax cuts.
Camden National Bank said Thursday that next week it will give one-time bonuses of $1,000 to all non-executive full-time employees and $750 to all part-time employees in response to the recently enacted corporate tax cut. The total cost of those bonuses will be $620,000, it said.
Camden National also said it plans to give permanent raises to employees, but that it will first bring in a consultant to help it determine the appropriate amounts of those raises.
The tax cut, which took effect on Jan. 1, reduces the corporate tax burden from 35 percent to 21 percent. A number of large, national companies have announced that as a result they are giving out employee bonuses or raises, or both. Those companies include AT&T, Wells Fargo and Walmart, which announced Thursday that it will raise the minimum hourly wage for all employees nationwide from $9 to $11 and also offer $1,000 bonuses and enhanced benefits. Walmart is one of Maine’s largest employers, with between 7,000 and 7,500 employees, according to state labor data.
Camden National employs about 660 workers and is Maine’s largest community bank with assets of almost $4 billion. According to its most recent quarterly earnings statement, the bank’s effective tax rate was 31.5 percent for the first nine months of 2017. Its income tax liability was $14.5 million for the same nine-month period.
Bank Executive Vice President Renee Smyth said Camden National has yet to determine exactly how much money it will save in 2018 as a result of the tax cut because it may lose some tax deductions along with the lower tax rate.
Camden National said it also plans to spend some of its expected tax windfall this year on personal finance education programs for its workers.
“The recent tax change has provided us a unique opportunity to make meaningful investment decisions that complement our existing values and strategies,” company President and CEO Greg Dufour said in a statement. “By making these investments, we’re able to reward our dedicated employees who work hard each day to serve our customers and give back to the community. We’re also in a position to accelerate projects that enhance our customers’ experiences and continue to create long-term growth and value for our shareholders.”
A survey of several Maine business organizations by the Portland Press Herald on Thursday did not reveal any other Maine-based businesses that already have announced pay raises or bonuses directly related to the corporate tax cut.
J. Craig Anderson can be contacted at 791-6390 or at:
Twitter: @jcraiganderson
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