Your First Job at 16: Your First Paycheque
You finish your first week at a first job at 16, do the maths in your head (hours times rate) and picture that number landing in your account on Friday. Then it does not, and when it does, it is a bit smaller. That is normal, and almost always explainable. This guide walks through what your first paycheque will look like, step by step, with a made-up example you can copy for your own numbers.
Before the first shift: the paperwork
On day one you will probably be handed forms. Three matter:
- A Social Insurance Number (SIN). A nine-digit number that employers need to report your pay to the government. You apply through Service Canada; see canada.ca for what to bring.
- A TD1 form. This tells your employer how much tax to hold back. The Canada Revenue Agency (CRA) publishes it. If you are unsure how to fill it in, ask a parent or the payroll contact, and keep a copy.
- Direct deposit details. Your bank name, branch (transit) number and account number, usually from a void cheque or your banking app.
Also ask for your pay period and pay date, in writing if you can. That one answer explains most "where is my money?" moments.
Why your first paycheque comes late
Most employers pay for a stretch of time (the pay period), then pay you some days after it ends. So your first cheque often covers work from a week or two before the day it arrives. I explain this in why your first paycheque comes late. If you started on a Monday, do not expect money the next Friday.
What comes off a 16-year-old's paycheque
The number you earn before anything is taken off is called gross pay. What reaches your bank is net pay. For a first job at 16, the usual differences are:
- Employment Insurance (EI). A small percentage of your pay goes to EI, which can pay benefits if you lose a job. It is a small amount on a small cheque.
- Income tax. Tax depends on your TD1 and your total yearly income. Many teens with part-time hours owe little or no tax for the year, but some may still be held back from each cheque. You can often get it back by filing a tax return, so keep your pay stubs.
- CPP. The Canada Pension Plan starts at 18, so you normally will not see it at 16. It appears once you turn 18.
Rates and rules change every year, so check the CRA for current ones instead of trusting a number from a blog. For the full list of what can come off a cheque in Ontario, see what comes off your paycheque in Ontario.
Worked example: a two-week pay period
Imagine Sam, 16, works three 4-hour shifts a week after school and on weekends at a cafe, at $17 an hour. (Check the current rate yourself: student minimum wage in Ontario explains who gets which rate.)
- Hours in one week: 3 × 4 = 12 hours
- Gross for one week: 12 × $17 = $204
- Gross for a two-week pay period: $204 × 2 = $408
Vacation pay is extra money for time off; in Ontario most workers earn at least 4% of their wages. If Sam's employer adds it to each cheque, that is $408 × 0.04 = $16.32 on top, so the cheque's gross is $424.32. Some employers instead save it and pay it out later, so check which one yours does.
After a small EI deduction, and possibly a little income tax, Sam's net pay will be a few dollars to a few tens of dollars below gross. The key habit is not the exact number but this: work out your gross yourself, then compare it with the stub. If the stub differs, ask why.
Your first-cheque checklist
- Write down every shift: date, start, end, and any unpaid break.
- Multiply hours by your rate to get your own gross.
- When the stub arrives, match pay period, hours, rate and gross.
- Name every deduction. Ask about any you do not recognise.
- Check the net pay against your bank deposit.
The first pay stub checklist goes through a stub line by line.
Rules for under-18 workers
Ontario has rules about how young people may work, including the minimum age for some jobs and limits on hours and time of day for younger teens. They are set by the Employment Standards Act, and the details change, so read the current guidance on ontario.ca. If you live outside Ontario, your province's employment standards office has its own rules.
Questions people ask
Do I have to pay tax on my first job at 16?
You may, or may not. It depends on your total income for the year and your TD1. Even if some tax was held back, filing a return can get it refunded. The CRA explains how.
Can my boss pay me cash?
Your employer still has to give you a statement of your wages, and your pay still counts as income. Ask for a pay stub either way.
What if my cheque is short?
Start with your shift notes and the stub. Ask politely and in writing. If it is not fixed, ontario.ca explains how to make a wage complaint. Talking to a parent or guardian first is a good idea.
Do I need a bank account?
Most employers pay by direct deposit, so yes, usually. A basic account is enough; ask your bank which ones are free for students.
Where CampusWage fits
If you are juggling school and a job, CampusWage, a free shift and wage tracker for students, puts your shifts and classes in one weekly view and shows what each shift pays after unpaid breaks, with a pay cheque for each pay period and its pay date, so you have your own number ready to compare with the stub.
This is general information, not tax or legal advice. Rules and amounts change; check the CRA and ontario.ca for the current ones.