Definitions for letter E (Business)

Election

A formal choice among specific options on how tax laws are applied to a taxpayer's financial affairs.

Eligible capital property

Generally, this is property that does not physically exist but that gives you a lasting economic benefit. Some examples are goodwill, or franchises, concessions, or licences for an unlimited period.

Employee

An individual who works for an employer.

Employer

An organization or individual who pays salaries or other remuneration to employee for rendered services.

Employer-employee relationship

A verbal or written agreement in which an employee agrees to work, on a full-time or part-time basis for an employer, in return for salary or wages. The employer has the right to decide where, when, and how the work will be done. In this type of relationship, a contract for services exists.

Employment insurance (EI)

A federal program that provides financial assistance to people who are temporarily out of work. It is an insurance program, with employers and employees making payments into the Employment Insurance Fund.

Employment insurance premiums

Deductions that an employer must make from employees' paycheques and forward to the Receiver General. Employers must also contribute to employment insurance (EI).

Excise

Taxes on the manufacture, sale, or use of goods and items.

Exempt supplies

Goods and services that are not subject to GST/HST. GST/HST registrants cannot claim input tax credits to recover the GST/HST they pay or owe on expenses related to such supplies.

Expenses

Costs you incur to earn business income. See Operating expenses.

Date modified:

2016-01-28