When you start working

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When you start working

Get a social insurance number

You must apply for a social insurance number (SIN) to work in Canada or have access to government programs and benefits. When you start a new job you must provide your social insurance number to your employer.

Activity 1 – Social insurance number

Pose the question: What is a SIN?

Using information found at canada.ca/social-insurance-number, students prepare a presentation on protecting their SIN.

Complete Form TD1, Personal tax credits return

You must complete Form TD1 when you start a new job. Your employer uses the information from your completed form to determine how much tax they must deduct from your pay.

Activity 2 – Form TD1

Show or project a copy of Form TD1.

Discuss the purpose of the form and briefly review it with students.

Learn about your Statement of earnings (pay stub)

When you are paid, your statement of earnings shows the deductions from your pay. Your employer has to deduct amounts for:

Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)

The CPP can provide you with pensions and benefits if you retire, become disabled, or die. With very few exceptions, every person who is 18 to 70 and works in Canada must contribute to the CPP. If you work in the province of Quebec, you contribute to the QPP instead.

Employment insurance (EI)

EI can provide you with financial assistance if you lose your job through no fault of your own, while you look for work or upgrade your skills. If you are sick, pregnant, or caring for a newborn or newly adopted child or seriously ill family member, you may also be helped by EI. There is no age limit for paying EI premiums.

Income tax

Income tax is a tax applied to income. Your employer deducts income tax from your earnings based on your province or territory of employment and your completed Form TD1.

If you are employed in Quebec, your employer will also deduct:

Quebec Parental Insurance Plan (QPIP)

Maternity, parental, and adoption benefits for residents of Quebec are administered by the province of Quebec. QPIP replaces similar benefits that Quebec residents previously received under the Employment Insurance Act. As a result, employees working in Quebec will pay QPIP premiums and reduced EI premiums.

Set the context

Students share information about their first job. Pose the following questions:

  • When you received your first pay, did you notice if any amounts were deducted?
  • Did you know what those deductions were for?
  • How do you think the deductions were calculated?
Activity 3 – Statement of earnings

Show or project the sample statement of earnings - worksheet 6.

Discuss the common deductions with students.

Get students to answer the following questions:

  • What is the pay period?
  • How many hours did Joe work during this period?
  • What is his rate of pay?
  • How much money did he earn?
  • How much money did he actually receive?
  • What deductions were made from his pay?

Discuss the meaning of gross pay versus net pay.

Gross pay

The amount of your earnings before any deductions are withheld.

Net pay

The amount of your earnings after deductions have been withheld.

Create a personal budget

Creating a budget will:

  • let you know how much money you actually have to spend
  • help you to plan where your money goes
  • help you to stay out of debt
  • ensure you have money for the things that are important to you
  • help you put aside funds to start a savings plan
Activity 4 – Create your personal budget

Students go online and search for a sample budget.

Using the sample budget, they complete a monthly budget for themselves:

  • they list where their money comes from (for example, parents, employers, odd jobs)
  • they list where they spend their money (for example, movies, clothes, food, leisure activities, savings)

Ask students to reflect on their own spending habits and consider whether they will do anything differently in the future.

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Date modified:
2019-01-31