It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing. This is a major annual event that occurs for most Ford Motor Company employees.
If you are looking for ways to maximize this benefit beyond its fullest potential, here are a few tips:
1. Build your emergency fund. A general rule of thumb is to have enough money to cover 3-6 months' worth of expenses if you do not have children. For those that have children, 6-12 months' worth of expenses in cash is recommended. If you are low on cash, now is a good time to build those reserves for unexpected emergencies.
2. Pay off debt. A lump sum of cash is a great opportunity to take care of some of that outstanding debt. Paying down debt is always a good thing, but knowing what to pay is the key. It is best to start by paying down the debt that is carrying the highest interest rate and work your way down the list. It is even better if you can pay some debt off completely. Getting your debts under control will free up future cash flow.
3. Invest it. This is recommended for those who have financially put themselves into a great position. If you have already built an emergency fund and your debts have already been addressed, saving the annual profit-sharing check would be a wise decision. Take advantage of Roth IRA contributions or after-tax investing. Both of these are excellent choices and will ultimately make your dollar go further.
4. Have some fun. One thing that we know is that those working in the manufacturing industry are working hard! Depending on your situation, it may be $100 that you take from your profit-sharing to make a small luxury purchase, or it may be half of your profit-sharing check. We certainly encourage you to examine the amount of “have fun” money you use based on your goals and your situation. However, we can all agree that we all deserve to have a little fun!
Bonus Tip: Should I adjust my tax withholdings on my profit-sharing check?
In most cases, yes! When paying out a large bonus or profit-sharing all on one check, the automatic calculations amortize the amount you are paid for the time period listed on the paycheck. Therefore, the tax withholdings will act as if you received a pay increase of over $525,000 annually rather than the $10,416 annual increase in earnings. By reducing the withholding on this one check, you are avoiding giving the IRS an interest-free loan until next year's tax return comes. However, if you find yourself owing every year, you might save yourself a future headache by leaving your tax withholdings as is.
While this is not a definitive list of options available, it certainly will point you in the right direction to making solid financial decisions. Everyone’s situation is different, so it is best to consult a professional to discuss your particular situation.
FAQs
It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing.
Are Ford workers getting profit-sharing checks? ›
Ford's UAW workers earn record profit sharing in 2023
The bonuses are part of the UAW's labor contracts with the Big Three automakers. Ford workers are entitled to a share of the company's North American profits each year.
What is the average profit-sharing for Ford? ›
Ford Motor Co. said Tuesday it will pay profit-sharing bonuses on average of $10,400 to hourly autoworkers in the United States for 2023.
What is the formula for Ford profit-sharing? ›
When calculating its profit sharing amounts, Ford multiplies its total North American pre-tax profits by a (unknown) percentage and then divides this number by the total number of employees who are eligible for payments. The number of hours an eligible employee has worked will also influence how much they receive.
What is the profit margin for Ford in 2024? ›
Current and historical gross margin, operating margin and net profit margin for Ford Motor (F) over the last 10 years. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Ford Motor net profit margin as of March 31, 2024 is 2.21%.
How much profit-sharing will I get? ›
To calculate, divide each employee's salary by the total salary pool to determine their percentage, then multiply this figure by the total profit sharing allocation to determine contribution amounts.
How much does Ford pay per share? ›
Ford Motor Company ( F ) pays dividends to its shareholders. Ford Motor Company's ( F ) quarterly dividend per share was $0.15 as of June 3, 2024 . Ford Motor Company's latest ex-dividend date was on May 7, 2024 . The F stock shareholders received the last dividend payment of $0.15 per share on June 3, 2024 .
How much is GM profit-sharing in 2024? ›
It's that time of year again when most General Motors employees will be eligible to receive their annual profit-sharing check on February 23rd. This year, approximately 45,000 U.S. hourly workers will receive up to $12,250 in profit-sharing.
What is the Ford profit-sharing multiplier? ›
The Ford profit-sharing formula generates $1 for every $1 million of corporate pretax profit and compensated hours per employee. Individual payments vary based upon the individual's eligible compensated hours, so overtime worked would result in higher payments.
Did Ford announce profit-sharing? ›
Ford announced Tuesday that hourly employees will receive an average of $10,416, which is an increase from $9,176 a year ago. Profit-sharing is negotiated by the union as part of its collective bargaining agreement with each of the Detroit Three automakers. U.S. hourly employees will receive the checks.
In 2021, GM paid $10,250. The GM-negotiated formula with the UAW for profit-sharing checks is $1,000 per every $1 billion in annual earnings before interest and taxes, or pretax profits for North America. For 2023, GM's North America pretax profits were $12.3 billion, down 5% from $12.9 billion a year ago.
What is the Ford retiree bonus? ›
Ford also agreed to allow the union to strike over plans to close plants, which wasn't included in prior contracts. Its 300,000 retirees will collect a $500 annual bonus, costing Ford about $150 million annually.
What is GM profit-sharing for 2024? ›
This year, approximately 45,000 U.S. hourly workers will receive up to $12,250 in profit-sharing. This is a major annual event that occurs for most General Motors employees.
How much is Chrysler profit-sharing in 2024? ›
It's that time of year again when most Stellantis (formally Chrysler) employees will be eligible to receive their annual profit-sharing check on February 29th, 2024. This year, approximately 40,500 U.S. hourly workers will receive up to $13,860 in profit-sharing.
What is Ford Basic earnings per share? ›
Ford Motor EPS for the twelve months ending March 31, 2024 was $0.97, a 32.88% increase year-over-year. Ford Motor 2023 annual EPS was $1.08, a 320.41% decline from 2022. Ford Motor 2022 annual EPS was $-0.49, a 111.01% decline from 2021. Ford Motor 2021 annual EPS was $4.45, a 1490.63% decline from 2020.
It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing. This is a major annual event that occurs for most Ford Motor Company employees. 