Test your employment standards knowledge with these true and false statements
Summer is a time when many young people work. Some are continuing in part-time jobs they work throughout the year, while others are beginning employment, possibly just for a few months until school begins again.
Whether employers hire young people year-round or just in the summer, payroll professionals have to make sure that they comply with applicable federal and provincial/territorial rules.
How well do you know requirements for employing young people? Test yourself with the following statements:
Employers must deduct Canada/Quebec Pension Plan (C/QPP) contributions from the pensionable earnings of all employees under age 70, as long as they work in jobs covered by them. True or False?
False. C/QPP contributions only apply for employees whose type of work is covered under the C/QPP, if they are at least 18 years old, but younger than age 70, and do not receive a C/QPP disability pension. Employees between the ages of 65 and 70 have the option to opt out of paying CPP.
Only deduct employment insurance (EI) premiums from employees who are at least 18 years old and who work full time. True or False?
False. There is no minimum age. All workers, regardless of age or full-time or part-time status, must pay EI premiums on their insurable earnings if they work in employment covered by the Employment Insurance Act.
Youth employees need a social insurance number (SIN) to start working. True or False?
True. Young people do need a SIN to do paid work. There is no minimum age for applying. As with other workers, employers must obtain and record a SIN from every young employee within three days of the employee starting work. If a young person does not have a SIN, the employer must inform them that they need to go to Service Canada to apply for one.
There are age restrictions for employing young people. True or False?
True, depending on the jurisdiction of employment and nature of the work. Employment standards laws in most jurisdictions set a minimum age for employment. Ontario is a notable exception, although employers must comply with occupational health and safety age restrictions for certain jobs.
Many jurisdictions restrict the type of work and put conditions on the maximum daily and weekly hours for children under 16 years old. In some jurisdictions, employers must also obtain written permission from the child’s parents or guardians and/or a permit from the director of employment standards.
Full-time students are exempt from paying income tax, so no payroll deductions are required. True or False?
False. Full-time students are not exempt from paying income tax simply because they are students. Many — especially those who work part-time — do not pay it because their employment income is less than the deductions they can claim, including the basic personal amount.
All employers should have their staff, including youth employees, complete and submit a federal TD1 form. If workers are claiming more than the basic personal amount (which some post-secondary students may), they should also complete a provincial TD1 for all jurisdictions but Quebec. Employees in Quebec must also fill out a TP-1015.3-V. The credits claimed on the TD1 and TP-1015.3-V forms help determine how much, if any, income tax the employer should deduct.
Records of Employment (ROEs) are not required for summer students leaving their jobs to return to school. True or False?
False. Employers have to complete and issue an ROE when an employee has an interruption of earnings. This applies whether the employee works for the employer throughout the year or only in the summer. Employers must issue the ROE regardless of whether the individual plans to apply for EI benefits.
T4s must be issued for workers who are still in high school even if they say they do not plan to file an income tax return. True or False?
True. Employers must issue T4s for all employees, regardless of their age or whether they plan to file an income tax return. Make sure to request notification of mailing address changes.
Summer students are always exempt from employment standards’ vacation pay requirements. True or False?
False. Unless the type of work that a summer students does is exempt from vacation pay standards, young people who work over the summer earn vacation pay from the time they begin working for an employer.
Employers must begin C/QPP deductions on the day in which an employee turns 18 years old. True or False?
False. For the CPP, employers must start deducting contributions for the first pay dated in the month after the month an employee turns 18. For the QPP, contributions begin on the first day of the month after the month an employee turns 18. To determine the maximum amount to deduct from employees in the year they turn 18, prorate the C/QPP yearly maximum pensionable earnings ($55,900 for 2018) over the number of full months in the year after the employee turns 18.
Employers have to pay summer students for statutory holidays that occur while they are employed. True or False?
True. Summer students are entitled to paid statutory holidays. This means they are entitled to paid holidays if their job is covered under the statutory holiday provisions of the applicable employment standards legislation and they meet eligibility conditions that may apply, including working for the employer for a certain period of time before the holiday in some jurisdictions.
Employers must pay student employees at least the general minimum wage rate. True or False?
True, depending on the jurisdiction. In most provinces/territories, young workers are entitled to be paid at least the general minimum wage rate.
Nova Scotia allows employers to pay a lower minimum wage rate to employees with less than three months of experience. Ontario has a separate minimum wage rate for students under 18 who work less than 28 hours a week, or more than 28 hours during school vacation.
British Columbia, Ontario, and Quebec also have separate minimum wage rates for employees who receive tips. The B.C. and Ontario requirements apply to employees serving liquor in licensed establishments.
All provinces require young people to take a work readiness course before being hired. True or False?
False. Currently, only Saskatchewan requires children aged 14 years and 15 years to complete a government-approved work readiness course if they want to work. Once the children complete the course, they have to give their employer a copy of the certificate they receive.
The Manitoba government recently tabled legislation that would require children under 16 years old to take a government-approved work readiness course before they are allowed to work.
Employment standards’ notice of termination rules apply to workers under age 18. True or False?
True. Regardless of an employee’s age, if they have been employed for a minimum amount of time established by employment standards (often three months) and their employment is covered by employment standards termination provisions, they are entitled to notice of termination or wages in lieu of notice if the employer is ending their employment.
In jurisdictions where employees are required to give notice, youths must provide the legislated amount of termination notice unless their type of work is exempted.
Summer students are not entitled to overtime pay until they turn 18. True or False?
False. Age is not a factor in overtime pay. Whether an employer has to pay overtime to summer students who work extra hours depends on the type of work they do and the jurisdiction in which they work. Employment standards laws in some provinces/territories exempt some types of work from overtime pay.
Editor’s note: If you got all the questions correct, congratulations! You know your youth employment rules. For more information on young workers, refer to applicable employment standards legislation and regulations.
