After Feb. 4, you can start letting go of the penny
Nunavut businesses urged to use rounding in cash transactions
The Government of Nunavut’s finance department is encouraging Nunavut businesses to begin rounding cash transactions.
That’s because on Feb. 4, the Royal Canadian Mint will stop distributing pennies.
Jim Flaherty, the federal finance minister, announced the impending demise of the penny in his March 2012 budget.
Only cash transactions will require rounding.
Transactions involving cheques or electronic payments such as debit or credit cards do not need to be rounded, because they can be settled electronically to the exact amount.
As pennies come out of circulation and are not available, cash transactions only will need to be rounded, either up or down as follows:
• Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents.
• Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents.
• Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents.
• Amounts ending in 8 cents and 9 cents are rounded up to the nearest 10 cents.
• Amounts ending in 0 cent and 5 cents remain unchanged.