Your customer is paying with cash. The total is $18.42 but there are no pennies in your drawer. How should the cashier proceed?
Florida’s law for cash rounding provides an easy solution to this problem. Due to the end of penny production, this law helps solve a small problem that has the potential of causing huge checkout problems.
If you own a restaurant, shop, or service business in Southwest Florida, this is what this change entails and how you should prepare your POS system for it.
What Is Florida’s New Cash Rounding Law?
Florida Senate Bill 1074 was enacted on May 11, 2026. This law enables cash transactions to be rounded to the nearest nickel in the absence of pennies.
Cash rounding is optional, not mandatory. The law does not compel every business owner to buy a new register.
Why Did Penny Production Stop?
Production of pennies by the United States ceased in November 2025. Producing one cent was more expensive than its face value.
It doesn’t mean the pennies stored in your wallet have no value. According to the penny FAQs on the official site of the U.S. Treasury, pennies remain legal tender.
From the perspective of the business owners, the problem is having enough small change available whenever customers require it.
How Does Cash Rounding Work in Florida?
The law considers the final number of your total, including sales tax. The method is explained below.
| Total ends in | Rounding rule | Example |
|---|---|---|
| 1 or 2 cents | Down to 0 | $18.42 becomes $18.40 |
| 3 or 4 cents | Up to 5 | $18.43 becomes $18.45 |
| 6 or 7 cents | Down to 5 | $18.47 becomes $18.45 |
| 8 or 9 cents | Up to the next 0 | $18.49 becomes $18.50 |
| 0 or 5 cents | No change | $18.45 stays $18.45 |
The law gives the opportunity to round your change. Follow one method to avoid rounding both your total and change.
Does This Apply to Card Payments?
This does not apply to card payments. Credit cards, debit cards, checks, gift cards, and other noncash transactions remain exact. Split transactions are not included in rounding unless cash is returned to the customer.
It is recommended that you verify your point-of-sale settings for split transactions and cash refunds before activating rounding.
Does Cash Rounding Change Florida Sales Tax?
Not at all. Apply Florida state sales tax and any surtax on the sale prior to rounding. Rounding will not affect the cost of the item, tax, or any other fee.
For example, consider a taxable transaction of $10 with an aggregate tax rate of 7%. The tax will be $0.70 resulting in a total of $10.70 which requires no rounding.
In a taxable transaction of $10.72, rounding will reduce the total to $10.70, but the taxes remain the same.
The cash rounding document from Florida Department of Revenue released on June 10, 2026, gives the latest guidance. It updates the earlier one published in December 2025, so be sure you’re referring to the most current one.
How to Prepare Your POS for Cash Rounding
Start with the system you have right now. A new software version or configuration change might be enough. Consult your provider on how to do it in your POS.
Test More Than One Sale
Before you use this function in the middle of the busy day, conduct several test transactions. They should cover all possibilities: round-up, round-down, no rounding.
Next, make sure that it will work properly with credit card transactions, refunds, and split payments. You’ll want to compare the screen display, receipt, and closing report. Find out how rounding differences will be reflected in your accounting and discuss it with your accountant.
When you are researching POS solutions for your business, remember to include this functionality in your demo request list. Make sure you see how it works.
Give Staff a Simple Explanation
Your employees need to be capable of describing the change without calling for assistance from a manager each time.
In case of a company using a cash rounding policy, an easy explanation is “We round the total cash to the nearest nickel, sometimes higher, sometimes lower. Credit card transactions do not get rounded and are exact.”
A sign at checkout will give customers a chance to learn about the policy in advance. It will also be helpful to provide clear invoices to make a two-cent difference more understandable.
Get Your Checkout Ready Before the Next Rush
Now is a perfect time for businesses located in Fort Myers, Cape Coral, and other cities in Southwest Florida to reconsider their cash policies. Identifying any cash handling problems when there are no customers standing in line will be much easier.
We offer local POS systems and assist with setup and training in your business.
Contact Card Systems to assess your existing POS system and assist you in getting its cash-rounding system into compliance with the new law. Should your POS not meet these criteria, we’ll be glad to help you find a more suitable one that will.
