For years the Canadian Government has been making noise about how much it costs to make a penny – more than 1 cent to produce yet really quite worthless. The general public tends to hoard these little copper coins filling jars that take up so much space in their already too crowded homes. After countless hours of sifting through them one by one, they find the total in all these jars is a mere $1.99. Almost doesn’t seem worth it!
The decision came down with the annual budget, and, based on Canada’s economic action plan (kind of like America’s stimulus plan) the Canadian government has determined it is best to retire the penny.
How does this impact Canadian employees and their pay cheques? It DOESN’T. That’s right. You can breath a sigh of relief now. The impact to employers and employees is non existent. Employers will continue to pay their employees to the penny. The coin has gone out of circulation, not the ability to transfer exact funds to an employee for services rendered. As the employee continues to receive the odd cents on their pay cheques, they will eventually accumulate a nickel, dime, quarter or dollar that they can then happily spend as they see fit.
Let’s not forget that when you pay your bills, whether electronically or by cheque you will pay the bills to the penny also.
http://www.budget.gc.ca/2012/themes/theme2-eng.html
Here’s to helping you better understand what’s in your pocket.
Until next time.
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