Rounding Errors

I’m back at work today, and received a message from payroll that I found quite amusing:

Recent software changes implemented to the payroll system have resulted in an occasional $0.01 adjustment to employees gross pay.

The adjustment is related to the fact that the payroll system stores data to the fifth decimal place and rounds to the nearest second decimal place on each weekly payroll.

These occasional fluctuations are to be expected.

Every week I have to fight Quicken’s rounding when I enter my 403(b) transactions, for it seems to think investment companies use infinite precision. I also remember many years ago learning about the money to be made due to rounding (it adds up). Here we have an interesting application of the rounding situations. I have yet to notice whether it is in my favor.