Confirm the pay rate before the first shift
Ontario has a general minimum wage and a lower student rate. From October 1, 2026 to September 30, 2027 the general rate is $17.95 an hour and the student rate is $16.90. The rates change each October 1, so check the date if the job will straddle it. Our guide to Ontario’s minimum wage has the full table.
The student rate applies only to students under 18 who work no more than 28 hours a week while school is in session, or who work during a school break or the summer holidays. A student who is 18 or older is generally paid at least the general rate. Some student positions are excluded from minimum wage altogether, including approved co-op or work experience programs and students instructing or supervising children or working at a children’s camp, so confirm the position before you assume a rate.
Collect the TD1 and the social insurance number
You must get a completed federal Form TD1 from the student when they start work. A student claiming more than the basic personal amount must also complete the provincial form. Students do not need to repeat the form every year unless their credits change, but a student who starts a second job at the same time cannot claim the same credits twice and should tick the multiple employers box.
If you do not receive the form, deductions are limited to the basic personal amount estimated from the person’s income, and the employee can face a late-filing penalty. Keep the completed form with your payroll records; do not send a copy to the CRA. Ask for the social insurance number at hiring as well, since you will need it for the T4. If you are setting up payroll for the first time, start with our first payroll checklist.
Check CPP, EI and the age of 18
CPP is deducted only from employees between 18 and 69, so a student under 18 has no CPP deducted. When a student turns 18 during the job, start deducting in the first pay dated in the month after the birthday, and prorate the yearly maximum. As an illustration, a student who turns 18 in July would have CPP start with the first pay dated in August.
EI works differently. The CRA describes premiums as deducted from insurable earnings starting with the first dollar earned, up to the yearly maximum, and does not tie them to age. A short job does not change that. Use current-year rates from your payroll software or the CRA tables, because the figures change every January.
Vacation pay, holidays and the basics of hours
Ontario treats employees under 25 as young workers with the same employment standards rights as other employees. Vacation pay must be at least 4% of gross wages for someone with less than five years of employment, and employees earn it as they earn wages, so even a student who works one hour has earned some. Decide whether you will pay it with each cheque or hold it, and record the choice.
Canada Day and Labour Day are two of Ontario’s nine public holidays, and most employees who qualify are entitled to the day off with public holiday pay or an agreed alternative. Other rules students are often surprised by include overtime after 44 hours in a week, a 30-minute eating period after five hours in a row, and a wage statement on or before each pay day. Deductions for a uniform are allowed only with the employee’s written agreement.
Remit, then close the file properly
Remit what you withheld and your own share on schedule. A regular remitter with average monthly withholding from $0 to $24,999.99 remits by the 15th day of the following month; your remitter type sets the actual dates, so check yours. Seasonal hires are easy to forget because payroll runs for only a few months.
When the student stops work, issue a record of employment. An interruption of earnings generally occurs when someone has had, or is expected to have, seven consecutive days with no work and no insurable earnings, and that includes quitting to return to school. You must complete the ROE even if the student does not plan to claim EI. For electronic ROEs on a weekly, biweekly or semi-monthly pay period, you have up to five calendar days after the end of the pay period in which the interruption occurs. Monthly pay periods and paper ROEs follow different timing, so check which applies to you. Finally, give the student a T4 by the last day of February after the calendar year, even if they have already left.
Your conversation checklist
- Pay rate confirmed against the student minimum wage rules
- Completed TD1 on file for the start date
- Social insurance number collected
- Birthday recorded to time CPP at age 18
- Vacation pay approach decided and recorded
- Public holidays and overtime rules noted for the schedule
- Remittance due dates added to the calendar
- ROE issued within the deadline after work stops
- T4 prepared for the last day of February
Further reading & sources
- Ontario: Your guide to the Employment Standards Act – Minimum wage
- Ontario: Your guide to the Employment Standards Act – Young workers’ rights
- CRA: Filing Form TD1
- CRA: About the deduction of CPP contributions
- Service Canada: ROE guide
Tax rules and administrative requirements can change. Check the applicable official guidance and confirm your circumstances with a qualified adviser. This guide is not an assessment of your filing, payment or legal obligations.