The Canadian penny (one cent coin) has been taken out of circulation and businesses need to start rounding cash transactions to the nearest 5 cents.
The penny will remain as the smallest unit of Canadian currency and is only being phased out as tender. The phase out will only affect cash transactions.
When to Round the Penny?
Always round to the nearest nickel (5 cents) after sales tax has been calculated, see below:
|Round down||Any amounts ending in 1 or 2¢|
|Round up||Any amounts ending in 3 or 4¢|
Businesses are expected to round the final amount (or equivalently, the change owed) of any cash payment in a fair, consistent and transparent manner. There are a variety of ways that this can be accomplished and each business will need to decide the best method for their particular situation.
If you require additional assistance, please feel free to contact us.