TODAY S AGENDA. Reminder: Flyer Review Assignment is due today! Last Week s Lesson Review

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Adela Carter
5 years ago
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1 FEBRUARY 27, 2018

2 TODAY S AGENDA Reminder: Flyer Review Assignment is due today! Last Week s Lesson Review Counting-Up Method Worksheet (hand back and go over answers as a class) New Lesson: Sales Tax Calculating sales tax worksheet

3 LAST WEEK S LESSON REVIEW What did you learn?

4 REVIEW Role of a Checker-Cashier: They are responsible for establishing a friendly relationship with the customer, entering the information into the cash register accurately and timely, handling all cash, debit, cheque and credit card transactions, providing correct change to the customer, and dealing with returns and adjustments. Procedures to Follow as a Cashier: Ring the item first, then wrap the item. Return change before placing bills in the cash register. Have a neat and tidy cash drawer. Always count your cash float. Crumple new money slightly. Never leave an overfilled compartment. Use the "counting-up" method.

5 REVIEW What is the counting-up method and how is it used? It is the practice of making change accurately and counting it back by starting at the total cash owed and counting up to the amount received by the customer. Example: Total amount of sale: $0.80 Amount received by customer: $2.00 Count up 2 dimes to reach $ loonie to reach $2.00

6 REVIEW Why did Canada decide to phase out the penny, and how is the rounding method to be used? The decision to phase out the penny was due to its excessive and rising cost to produce it. Only the final amount should be subject to rounding.

7 REVIEW What is a Cash Float? It is a specific amount of money you are given to start your shift with. Once the cash float has been given to you, you must count the money to ensure it is exactly the amount you were supposed to received. This is very because you will have to account for all the cash in the cash register at the end of your shift.

8 REVIEW Three Main Types of Refunds Exchange Only: If a product is defective, you can replace it or offer the customer a different item of equal value. Store Credit: If customers are unhappy with a product, they can return the items to you and receive a credit for the amount of their purchase, usually less shipping costs. Full Refunds: When customers return items, especially if they used a credit card to purchase them, you will still need to pay the processing fees for the purchase, increasing the amount you will need to pay for the return.

9 RETURN: COUNTING-UP METHOD WORKSHEET

10 NEW LESSON: SALES TAX

purchased. Sales tax is not revenue that the seller gets to keep.

11 SALES TAX WHAT IS IT? Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased. Sales tax is not revenue that the seller gets to keep. The seller is simply collecting the tax as part of their agreement to do business in that province or territory. Every month or quarter the seller will have to prepare forms and pay in the money they collected for taxes back to the government. Canada has different sales tax such as GST, PST, and HST.

12 SALES TAX - GST GST: Stands for Goods and Services Tax This is a federal tax, which means all provinces and territories are charged the same rate - 5%. The GST tax rate applies to a wide range of goods and services.

13 SALES TAX - PST PST (Provincial Sales Tax) or, in some provinces, now referred to as RST (Retail Sales Tax) These are taxes the provinces and territories charge on retail sales of many goods and services. Because this tax is a provincial tax, all provinces may charge different rates. PST is charged on the selling price of the item before GST is applied, thus avoiding GST being charged on PST.

14 SALES TAX - HST HST: Stands for Harmonized Sales Tax Currently only in Nova Scotia, New Brunswick, Newfoundland and Labrador, PEI and Ontario. These provinces have their GST harmonized or "combined" with the PST rate to become one flat tax rate of HST. For example: Manitoba is 5% GST and 8% PST, Ontario is just 13% HST combining the 5% GST within that amount.

15 TAX-EXEMPT (NO TAXES APPLIED) Customers do not get charged tax on certain goods and services depending on what taxes apply. GST tax-exempt items include basic groceries (fresh, frozen, canned and vacuum sealed fruits and vegetables, breakfast cereals, most milk products, fresh meat, poultry and fish, eggs and coffee beans), most medical services, prescription drugs and residential rents. PST tax-exempt items include basic groceries, most medical services, prescription drugs and residential rents. In Manitoba, clothing and footwear are exempt from PST if children are 14 years of age or younger and the selling price is $ or less. To allow this exemption, the seller is required to obtain a written signature from the customer, certifying that the purchase is for a child 14 years of age or younger.

16 SALES TAX The sales tax rates are continuously changing. What may be true for this year can very well be different next year. However the following tax table identifies the current tax rates in Canada.

18 EXAMPLE FOR A MANITOBA SALE If the amount of the sale before taxes is $4.99, what is the final sale amount? GST? PST? Total?

19 CALCULATING SALES TAX WORKSHEET

Federal and Provincial/Territorial Tax Rates for Income Earned

Federal and Provincial/Territorial Tax Rates for Income Earned by a CCPC Effective January 1, 2015 and 2016 by a CCPC Effective January 1, 2015 1 Federal rates General corporate rate 38.0% 38.0% 38.0% Federal abatement (10.0) (10.0) (10.0) 28.0 28.0 28.0 business