Darryl Stewart
By Darryl Stewart
SHARE
© 2020 IBEX PAYROLL BLOG. ALL RIGHTS RESERVED.

The Penny Lives On!

By Spencer Yarnell, Head of Spreading the Herd Word

The Canadian penny is on it’s last legs.

As you all probably know production of the penny has stopped. All purchases will be rounded to the nearest five cents and in time the penny will disappear from all but the most ardent of collectors’ possession.

The penny, the 1 cent counter will be gone… Except on payroll.

The ill-fated penny still lives on in payroll!
Photo by Mrgreen09 Click photo for link to photostream

That’s right the penny lives on through payroll since employees’ pays are not viewed as a cash transaction. This means that like debit/credit cards and cheques, these transactions can still be settled down to the penny. Unfortunately (Or maybe fortunately depending on how your taxes fall) taxes on your paycheque will also be determined down to the penny so don’t expect any favourable rounding.

Obviously this all goes to shmuck if you’re one of the golden few who still pay employees or get paid, in cash. While I applaud  your dedication to tradition and would just love to meet your book keeper (If he or she exists, and still has a thread of sanity) this new rule certainly doesn’t make your chosen road any easier as you will  now have to round up or down and be out a few pennies one way or the other. The Canadian Payroll Association basically says tough luck . Maybe it’s time to switch to direct deposit?

For more info on the penny, see the CBC article here.

Goatbuzzter out.