CASH TRANSACTIONS WITH THE PENNY SHORTAGE: ROUNDING TO THE NEAREST NICKEL

With the United States Treasury ending production of the penny in November 2025, the Florida Legislature recently approved a new law that allows businesses to round in-person cash transactions to the nearest nickel.

In-person cash transactions may now be rounded to the nearest nickel using the method outlined below from the Florida Department of Revenue.

Note: The combined state sales tax and discretionary sales surtax (local sales tax) must still be calculated pursuant to current law prior to applying the rounding method.

If the final digit of a cash transaction (total sales price plus sales tax) ends in

  • 1 or 2 cents – round down to zero. Example: $10.51 → round down to $10.50
  • 3 or 4 cents – round up to 5 cents. Example: $10.53 → round up to $10.55
  • 6 or 7 cents – round down to 5 cents. Example: $10.56 → round down to $10.55
  • 8 or 9 cents – round up to 10 cents. Example: $10.58 → round up to $10.60
  • 0 or 5 cents – do not round. Example: $10.50 → do not round

Rounding to the nickel does not:

  • Apply to non-cash methods of payment, such as check, credit card, gift card, money order, or electronic funds transfer, or mixed tender except to the extent that cash is disbursed to the purchaser.
  • Increase or decrease the sales price, sales tax, surtax, surcharge, assessment, or fees imposed on the sale. Sales tax remains due on the actual sales price prior to the rounding.

Example 1: A business sells a taxable item for $9.84 to a customer paying cash. The combined state sales tax and discretionary (local) sales tax rate is 7%. The total is $10.53 ($9.84 plus $0.69 in sales tax). Using the chart above, the business would round the transaction up to $10.55. Rounding does not increase the sales price of $9.84 or the total sales tax by the businesses for this sale, which is still $0.69.

Example 2: A business sells a taxable item for $7.55 to a customer paying in cash. The combined state sales tax and discretionary (local) sales tax rate is 7.5%. The total is $8.12 ($7.55 + $0.57 in sales tax). Using the chart above, the business rounds the transaction down to $8.10. Rounding does not decrease the sales price of $7.55 or the total sales tax due by the business for this sale, which is $0.57.

BACK-TO-SCHOOL SALES TAX HOLIDAY STARTS JULY 20TH 

For thirty days starting Monday, July 20th, qualifying back-to-school items are exempt from the Florida sales tax:

  • School supplies selling for $50 or less.
  • Clothes, shoes, and accessories selling for $100 or less.
  • Learning aids and jigsaw puzzles selling for $30 or less.
  • Personal computers and some computer accessories selling for $1,500 or less when purchased for personal use (not business use).

Businesses selling these items are responsible for knowing which items are tax-exempt during the sales tax holiday and must promptly refund to the customer any sales tax mistakenly charged. Sales tax becomes state funds the moment it is collected from the customer. If the tax cannot be refunded, it must be reported and paid to the Florida Department of Revenue.

Sales of tax-free items must be reported as exempt sales to the Florida Department of Revenue on the next sales tax filing after the tax-free holiday. For more information, visit floridarevenue.com/BacktoSchool.

REMINDER: BOI REPORTS ARE NOT REQUIRED

Please continue to be wary of emails you get about filing a Beneficial Ownership Information or “BOI” report. These emails are not from the government. They are solicitations from private companies that want to charge you for filing a BOI report on your behalf.

Even though the BOI has been dead for over a year, private companies are still sending “reminder” emails to small businesses about filing the BOI.

Here is the bottom line: Small businesses do not have to file a BOI report. Unless your business is registered outside the United States of America, you can safely ignore solicitation or “reminder” emails regarding the BOI report.

WORKERS’ COMP CORNER: REPORT WORKPLACE ACCIDENTS TIMELY OR FACE PENALTIES AND FINES

This article is from FUBA’s workers’ compensation insurance program and contains an important reminder for all businesses, not just those insured through FUBA Workers’ Comp.

If your business has a workers’ comp insurance policy, it covers your employees if they get hurt on the job. As the employer, you should report any work-related injury or illness to your insurance company as soon as you know about the injury. Reporting injuries timely is important so that your injured employee gets the care they need as soon as possible.

Florida law requires also all workplace injuries to be reported to your insurance carrier within seven days of the date you were informed. If you wait longer than seven days, the State of Florida will fine you up to $2,000.

Workplace fatalities must also be reported within 24 hours to the Florida Division of Workers’ Compensation at 800-219-8953.

You should report all claims of work-related injuries or illnesses to your workers’ compensation insurance company, even if they are minor. This includes claims for which there are no witnesses to the injury. Your insurance company will investigate the claim to make sure your employee is entitled to benefits under the Florida workers’ comp law.