This support note describes how to set up a student in Payroll. The setup differs depending on whether the student's expected earnings will be above or below the school child threshold.
School child threshold
A student can earn up to $2340 or $45 per week before they are required to start paying tax.
If student works 3 hours per week at $10 per hour, the total for the year will only be $1560 ($30 X 52 weeks). Therefore no tax will be deducted.
If a student works 5 hours per week at $10 per hour, the total for the year will be $2600 ($50 X 52 weeks). This exceeds the threshold, so Payroll will commence to deduct tax for the portion of earnings over the threshold.