Google, the world’s biggest internet search and advertising company, said it would be giving its employees a pay raise and other perks to help them pay taxes.
Key points:The US is the first major tech company to announce its plan to make its employees pay taxesGoogle has previously announced plans to pay its employees $500 a week for two years, and to provide $1bn of tax breaks and tax cuts to help pay employees for two more yearsThe company said it was also opening up more tax loopholes to encourage more people to work at the companyThe company also said it planned to offer tax-deductible travel and housing benefits to some of its employeesGoogle has said it will be paying $1 billion to help it hire people for two decades, while it will also give $500 to all of its workers a year for two-and-a-half years, as part of a plan to give the money to help its employees for a second time.
Its tax-credit plans will be paid for by the company’s $1,000 a month tax-exemption on income, which is expected to reach $1 million by 2025, the company said in a statement on Thursday.
“We expect that this will be an important component of the next phase of our business as we continue to attract and retain talented employees,” the statement said.
The company has previously revealed plans to give $1 and $500 pay raises to all its employees.
“In addition to helping us attract and keep talented employees, the tax-exempt compensation plan also allows us to expand our tax-deferred compensation plans to more than 30,000 full-time and part-time employees across our U.S. operations, enabling us to give all of our employees a share of the proceeds from our sale of Google Inc,” Google said.
Google said it had started paying $500 in annual pay raises for two employees and planned to pay at least another $500.
“Over the next two years we will be increasing the pay of employees who already have been eligible for this tax break by at least $500 per year,” it said.
It also said that, to help people in its U.K. and Ireland operations, it would offer $1m in tax-preferred home loans and other incentives.
“Google has long recognised that a successful tax-refund program should be based on a comprehensive plan, rather than a small number of people,” the company added.
“While Google will continue to encourage our employees to work hard and contribute to the company, we are also making it clear that this program does not apply to our European employees, which will continue as planned.”
Google’s move follows similar announcements from Facebook and Amazon.
Google has already paid $1 in compensation to some employees, but is also looking to offer more in tax deductions.
Facebook and Amazon said they planned to give more employees tax breaks, and the company also announced plans for $1-million-a year home loan guarantees.
“Today we are announcing the start of a new phase of Google’s tax-recovery program, as we look to provide more people with the tools to take advantage of these tax breaks,” a Google spokesman said in an email to the Financial Times.
“As we’ve said before, we have always believed that tax-friendly incentives like this can be a powerful way to get people to make the most of their pay.”
Google has traditionally been one of the world\’s most profitable companies.
But the US tax system has become increasingly complex, and some US residents may be left out of the deal.