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As companies adapt to tariffs, they may unintentionally establish a tax nexus in new states. Glenn C. McCoy, Jr., principal of National Tax at Ryan, highlights the case of Apple's $26m dispute with Florida's Department of Revenue, which underscores the broader issue of states reinterpreting tax systems. States like New York, California, and Illinois treat tariffs as part of product costs, leading to additional sales tax burdens. For instance, a $1m shipment with a 25% tariff could incur an extra $75,000 in sales tax. CFOs must be aware that the importer of record significantly affects tax treatment. McCoy advises financial leaders to review purchase agreements, model multi-state impacts, and monitor nexus expansion to mitigate tariff-related tax exposure. As tariff policies evolve, the complexities of state and local tax implications will increase, making proactive management essential for maintaining margins.

 

CFO

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The Wall Street Journal reports that Amazon plans to extend new employment offers to Whole Foods Market's U.S. corporate employees as part of a new effort to integrate its grocery businesses and boost collaboration and innovation. Whole Foods corporate employees will have access to an Amazon discount and healthcare benefits, although they will over time lose certain Whole Foods perks, such as an in-store discount and four weeks of remote work a year. "As shared with employees in June, Whole Foods Market corporate employees will move to the same programs and offerings as the rest of Amazon corporate employees . . . creating one consistent experience across teams," spokesperson Lauren Snyder said.

 

Reuters

Wall Street Journal

Members of the United Auto Workers (UAW) union at GE Aerospace's Evendale, Ohio, plant will strike starting Thursday after contract negotiations failed. UAW President Shawn Fain announced the decision in a video. The strike also affects a GE distribution facility in Erlanger, Kentucky. The action reflects ongoing labour unrest in the aerospace sector, where unions are advocating for better pay and job protections. The local chapter represents over 600 workers, who voted for a strike if no agreement was reached by August 27. GE Aerospace has not commented on the situation.

 

U.S. News

Newmont is developing cost-cutting plans that could include deep job cuts following its $15bn acquisition of Newcrest. The gold miner, whose costs have surged to record highs, aims to reduce all-in sustaining costs by up to $300 per ounce - about 20%. Bloomberg reports that thousands of jobs could be at risk as part of a restructuring effort supported by Boston Consulting Group. While Newmont hasn’t confirmed specific targets, it acknowledged a broader productivity program. CEO Tom Palmer told investors cost improvements are a priority as legacy Newcrest assets continue to underperform.

 

Bloomberg

Uber Eats has agreed to pay over $15m to 16,120 drivers due to violations of Seattle's pay transparency and minimum wage laws for app-based workers. The settlement, the largest by Seattle's Office of Labor Standards, follows complaints regarding the company's "boost" program, which misrepresented potential earnings. Mayor Bruce Harrell said the settlement was “a major win for workers and a strong reminder that in Seattle, we hold large companies accountable.” The settlement includes $13.5m for the Independent Contractor Protections Ordinance and $1.5m for minimum wage violations. Despite denying the allegations, Uber Eats opted for the settlement, in a move indicative of ongoing tensions between app-based companies and local regulations.

 

The Columbian

Delta Air Lines will pay $78.75m to settle a class-action lawsuit over a 2020 fuel dump that affected around 38,000 properties in Los Angeles and Orange counties. The incident involved Delta Flight 89, which jettisoned 15,000 pounds of fuel over densely populated areas during an emergency return to LAX. While the FAA cleared the pilots, residents claimed safer alternatives were ignored. Delta denied wrongdoing, citing adherence to federal protocols, but agreed to settle to avoid prolonged litigation. Net payouts are expected to reach $50.6m pending court approval.

 

Reuters

According to a study by Stanford University, entry-level employment in the U.S. has dropped by 13% in fields most affected by artificial intelligence, such as software development and customer service. The research, co-authored by economist Erik Brynjolfsson and researchers at Stanford's Digital Economy Lab, highlights that while entry-level positions are declining, employment trends for experienced workers in these fields have either remained stable or improved. The study indicates that "drops in employment are most common for jobs where AI is most likely to automate human work." The findings, based on data from Automatic Data Processing Inc., suggest that the rapid adoption of AI technologies is reshaping the job market, particularly for younger workers aged 22 to 25.

 

Los Angeles Times

Kohl's saw its shares close up 24% at $16.17 on Wednesday, following the release of a second-quarter earnings report that topped Wall Street expectations. The three months to August 2nd brought revenues of $3.35bn, down from $3.53bn a year earlier, and net income of $153m, or 56 cents per share adjusted, up from $66m. Analysts surveyed by LSEG had expected sales of $3.32bn and adjusted per-share earnings of 29 cents. Like-for-like sales decreased 4.2%, while inventory dropped 5% to $3bn at the end of the quarter. 

 

Milwaukee Journal Sentinel

CNBC

Reuters

Wall Street Journal

A recent study by the Tax Foundation reveals that taxpayer compliance costs are projected to reach $536bn this year, accounting for nearly 1.8% of the gross domestic product. The report highlights that over 2.1bn hours are spent on individual tax forms, costing $146.9bn, yet this only represents less than 28% of the total compliance burden. Businesses bear a significant portion of these costs, which have increased from the previous year. Alex Muresianu, senior policy analyst at the Tax Foundation, said: "Measuring compliance costs is an ongoing task, and must be revisited when tax laws change." The study emphasizes the need for Congress to consider compliance costs before enacting new tax laws, especially with the complexities introduced by recent legislation.

 

Accounting Today

H&R Block is placing its social creative and media duties under one roof through an expanded relationship with agency VaynerMedia. Chief marketing and experience officer Jill Cress said the initiative has grown out of a "fail fast, learn fast" ethos, in marked contrast to traditional tax-season marketing. The brand hopes VaynerMedia can help it push the envelope and pivot in real time to capture relevant discussions, an embrace of risk in a typically conservative field. “Bringing social creative and media together under one partner isn’t just operationally efficient, it’s a competitive advantage,” commented Ms. Cress. “VaynerMedia’s integrated approach fuels agility, sharpens our cultural edge, and ensures we’re building stronger connections with more customers, all year long by integrating H&R Block into daily interactions.” 

 

Marketing Dive

A recent report from the National Association of State Boards of Accountancy, titled The NASBA Report: Candidate Performance on the Uniform CPA Examination (2024 Edition), provides an in-depth analysis of CPA exam candidate success across various jurisdictions and institutions. The report highlights that 74,165 candidates took the CPA exam in 2024, with a pass rate of 17.6% for those completing their final section. Notably, Nebraska led with a pass rate of 61.9%, followed by Utah at 58.6% and Montana at 57.4%. The redesigned CPA exam emphasizes technology and analytical skills, reflecting the evolving landscape of accounting. The report also ranks universities based on candidate performance, with the University of Illinois Urbana-Champaign having the highest number of first-time candidates at 524. The 2024 edition is available for $300 through NASBAreport.com.

 

CPA Practice Advisor

Rev. Al Sharpton will today lead a protest march on Wall Street, urging corporate America to resist the Trump administration's efforts to roll back diversity, equity, and inclusion (DEI) initiatives. The march coincides with the anniversary of the 1963 March on Washington. Sharpton said that DEI represents the “civil rights fight of our generation.” In response to the administration's actions, his group, the National Action Network, is encouraging consumers to boycott retailers that have reduced DEI programs. Sharpton has also called for “buy-cotts” in support of companies like Costco that maintain their DEI commitments. The march will begin at Foley Square and is expected to attract various political figures, including New York City mayoral candidates.

 

US News and World Report

Washington Post

Australian bank ANZ is offering psychological counselling to senior bankers who received an email sent in error instructing them to return their computers, ahead of news of their firing. The bank, one of Australia's largest lenders, has apologised to staff after mistakenly sending the automated emails about redundancies before informing employees. The bank's acting head of retail, Bruce Rush, acknowledged the error during a call with senior managers. The emails prompted confusion among employees, with many seeking clarification from Ganesh Chandrasekkar, ANZ's general manager for talent and culture. Chandrasekkar confirmed that those who received the emails would be let go. Rush expressed his regret, saying: "It was not our intention to share such sensitive news with you in this way." ANZ is undergoing a major restructure under new CEO Nuno Matos.

 

Financial Review

Financial Times

European banks have seen widespread unauthorized direct debits from PayPal accounts, according to the German Savings Banks Association (DSGV). The German newspaper Sueddeutsche Zeitung said payments worth in the region of €10bn have had to be blocked after PayPal's fraud-checking system failed. It said payments were paused on Monday when lenders reported millions of suspicious direct debits from the payment firm. The DSGV confirmed to the BBC there had been "incidents involving unauthorized direct debits initiated by PayPal against various credit institutions."

 

BBC News