The U.S. Mint has discontinued production of the penny, leaving many businesses literally penniless. This can make cash transactions tough.
Here are some tips to remember:
- –This is ONLY FOR CASH PAYMENTS, and only if you DO NOT HAVE PENNIES to give as change.
- –FOR CASH PAYMENTS and IF YOU DO NOT HAVE PENNIES, you will need to round up or down to give change in nickels. The U.S. Treasury is recommending “symmetrical rounding, whereby if the final digit of the total transaction amount (including taxes) is 1, 2, 6, or 7 cents, the amount is rounded down to the nearest multiple of five. If the final digit is 3, 4, 8, or 9 cents, the amount is rounded up.
- –You could also round up or down to the nearest nickel.
- –There is no direction yet from the state of Massachusetts about best rounding practices.
- –All other forms of payment should still be done to the exact cent.
- –You must still accept pennies as payment – they are still legal tender.
- –Businesses should apply rounding practices in a fair, consistent, and transparent manner.
- –This should not affect prices.
- –For CASH refunds, each business may set their own policies.
- –All financial reporting and requirements, such as tax collection and tax reporting, will still be done to the exact cent.
From the U.S. Treasury:
As pennies fall out of circulation and states adapt their laws and policies accordingly, we recommend rounding for cash payments should take place only after all duties, fees, and taxes have been calculated. Businesses may choose to update their point-of-sale systems to automatically apply rounding for cash transactions. Doing so can enhance transparency and improve the customer experience by clearly displaying the rounding adjustment on receipts.
To support a smooth transition, the Treasury Department is actively collaborating with point-of-sale (POS) system providers to ensure their systems are properly equipped to handle rounding and accurately calculate sales taxes.