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15 days agoI write POS software, and have written tax calculations that cover about 30 states, and several CA provinces.
While we do have to round (always up) when calculating sales tax, there’s no way for the business to figure out how much that rounding would be, since it’s just added to the tax collected.
And in all states that I’ve worked with, a business has to pay what they collected (even if they over collect), and can’t just calculate a percentage of total sales (since many states have tax tables, rounding rules, or 3-4 decimal tax rates, and not a flat percentage tax).
So it’s actually the government that gets the benefit of the rounding.
I’m an owner, so make many decisions (but I also have smart employees who’s opinions I trust very much).
This is a tough one to deal with, especially with smaller Android based handheld devices. In the 5" to 6" range we can get a few different things (wholesale costs):
You can guess which ones we sell the most of. Especially since they tend to get dropped, or lost quite a bit (we’re in the restaurant POS business).
For the stationary (15" Android) terminals, the situation is similar. But we sell these devices more than the handhelds, and after a few installs with well made but slower hardware, my tech lead ruled out offering the cheaper ones in favor of selling the ones with better specs, so that’s where we are now.
But lots of our competitors give hardware away to get the credit card processing revenue (a total rip off for the customer, but it’s the nature of the game), so they use the cheapest option.