Rounding Guidelines As pennies exit circulation, cash payments or transactions only will need to be rounded, either up or down, to the nearest five-cent increment. The Government of Canada will be adopting a rounding guideline that has been used successfully by other countries for its cash transactions with the public. Under this guideline, when pennies are not available, cash transactions will be rounded in a fair and transparent manner, as illustrated below:.
When to round Again, only cash transactions require rounding. For any cash payment, only the final amount or equivalently, the change owed should be subject to rounding.
Click OK to receive emails from the Mint and be among the first to hear what's new! The Currency Act states: "A payment in coins … is a legal tender for no more than … 25 cents if the denomination is one cent. The federal budget states: "The government expects that businesses will apply rounding for cash transactions in a fair and transparent manner.
The rounding will not be done on single items but on the total bill of sale. If the price ends in a one, two, six, or seven it gets rounded down to 0 or 5; and rounded up if it ends in three, four, eight or nine.
They won't make a difference. The government wants the rounding done on cash transactions only after the taxes have been added to the sub-total. Cheques, credit and debit cards and electronic transactions will continue to be settled to the cent. The first coins of the Dominion of Canada were issued in , although the penny was not added until The penny had been in use in what is now Canada since , when the province of Canada adopted the decimal system.
From to , Canadian coins were struck at mints in England. The first Canadian-produced penny dates from , when the Ottawa branch of the British Royal Mint opened. Canadians can continue to deposit pennies at their financial institution. Some financial institutions may require large amounts of pennies to be rolled or wrapped for deposit.
Canadians should consult their financial institution in advance to determine how best to make deposits. The standard practice is that pennies, like other coins such as dimes or nickels, are rolled or wrapped for deposit. Financial institutions and charities have the discretion to decide whether pennies must be rolled or not.
Canadians should consult their financial institution or charity of choice to determine whether unrolled pennies will be accepted. As such, there is no time limit for redeeming pennies. Experience in other countries that have phased out low-denomination coins, such as Australia and New Zealand, has shown that fair rounding practices have been respected. For any cash payment, only the final amount or equivalently, the change owed should be subject to rounding.
Individual items, as well as any duties, fees or taxes, should be tabulated in their exact amount prior to rounding. Phasing out the penny is part of Economic Action Plan Click OK to receive emails from the Mint and be among the first to hear what's new! However, the face value is intentionally kept lower than retail partly to discourage circulation, and to protect the Mint from the fluctuation of precious metal prices.
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