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How will employers spend their tax cut savings?

A fair number of employers say they plan to use their tax cut savings to enhance employee compensation and benefits, while stock analysts believe the majority will be used for stock buybacks and shareholder dividends.

By Katie Kuehner-Hebert | Updated on February 12, 2018
If given a cash payment, 51 percent of employees would save it, while 30 percent would pay down credit card bills and 7 percent would spend it. (Photo: Shutterstock)

A fair number of employers say they plan to use their tax cut savings to enhance employee compensation and benefits, while stock analysts believe less will actually go towards workers – and more will be used for stock buybacks and shareholder dividends.

Aon asked 504 mid-large employers how they planned to use the expected “the windfall” created from the federal Tax Cuts and Jobs Act, and found that 29 percent will enhance their employee compensation and benefits; 26 percent will spend on capital structure; 24 percent will spend on infrastructure; and 23 percent will direct return to shareholders.

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Katie Kuehner-Hebert

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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