Congress has passed the Common Cents Act, which awaits enactment. The bill has not yet become law, and its proposed rounding rules are not currently in effect.
Why it matters: The bill would establish federal rules for rounding cash transactions as pennies become less available.
The key details:
- Rounding is optional. When exact change is unavailable, cash totals may round to the nearest nickel: 1, 2, 6 or 7 cents down; 3, 4, 8 or 9 cents up. Totals ending in 0 or 5 stay unchanged.
- Round the final amount, including taxes, or change due, rather than individual prices. Businesses may also round in the customer’s favor.
- Cash employee payments may only round up. Exact payments remain permitted.
- Noncash payments stay exact, including cards, checks and electronic payments.
- Pennies remain legal tender. The enrolled bill contains no one-year delayed effective date.
What to do: Ask your DMS, point-of-sale and payroll providers how rounding would appear on receipts and reconcile in your accounting records.
Questions about this topic or other compliance and regulatory matters? Contact support@nhada.com. We are here to help.