1 the business register: introduction and overview ronald h. lee [email protected]@census.gov...
TRANSCRIPT
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BR: Introduction and Overview
What the Business Register Is and How We Use It
Key Concepts and Definitions
Register’s Main Components
Its Content
Its Data Sources
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What is the Business Register?
– Simply stated it’s the Census Bureau’s master business list
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How is the BR used?
• Its primary function is to identify target populations for business statistics programs. This includes:– The Enumeration list for the Economic Census– Survey sampling frames
• Its secondary function is to provide a central storage of administrative data that:– Serves as a control file for data collection and processing – Provides data for statistical products– Source for economic research
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Some Key Concepts and Definitions
The BR identifies five basic types of statistical units: Business
– Establishment - plant– Enterprise - company– Enterprise segment or alternative reporting unit –
group of establishments designed to facilitate reportingAdministrative
– Employee Identification Number (EIN) – Business Taxpayer
– Social Security Number (SSN) – Individual Taxpayer
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Key Concepts and Definitions
Business units are further defined by their complexity
Single-establishment enterprise:– An enterprise that operates just one establishment– Aka as single unit or SU.
Multi-establishment enterprise:– An enterprise that operates two or more establishments– Aka a multiunit or MU– Multiunits may be--
• Simple: one EIN, no subsidiaries• Complex:
– Two or more EINs and/or
– One or more subsidiaries
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Single Unit
For all practical purposes,the enterprise, establishment, and EIN unitare one and the same
=
==
Enterprise
EIN(Payroll and/
or IncomeTax)
Establish-ment
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Simple Multiunit
The simplest MU enterprise•2 establishments•1 EIN unit
EIN(Payroll &
Income Tax)
Enterprise
Establish-ment
Establish-ment
•Very typical MU(most have only a
fewestablishments)
•EIN reports both payroll
and income tax
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More Complex Multiunit
EIN(Payroll Only)
EIN(Payroll Only)
EIN(ConsolidatedIncome Tax)
EIN(Payroll Only)
Enterprise(Parent)
SubsidiaryEstablish-
mentEstablish-
mentEstablish-
mentEstablish-
mentEstablish-
mentEstablish-
mentEstablish-
ment
Establish-ment
Establish-ment
A more complex MU may have: Multiple EIN units One subsidiary enterprise or more
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Makeup of the BR'sBusiness Population: 2003
Active Enterprises %
Active Establish-
ments %Employees
(mid-March) %All Enterprises 23,871,291 100 25,398,904 100 114,363,400 100
Employers, total 5,725,291 24 7,252,904 29 114,363,400 100
Single-Unit 5,536,364 23 5,536,364 22 49,516,080 43
Multiunit 188,927 1 1,716,540 7 64,847,320 57
Nonemployers 18,146,000 76 18,146,000 71 0 0
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System Design
• Oracle Database
• Many Related Tables
• Interactive Web-Based Interface built with Oracle Forms & Procedural Language/SQL – Interface used for research and updates
• Interactive and batch routines are used to load, update, correct, and edit data
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Main Components of the Business Register Structure and Organization
SURVEY_UNITSTypes: Establishments
EnterprisesARUs/Other Segments
ADDRGEOSTypes: Physical location
BMF mailEconomic Census mailForeign
EMPLOYER_UNITSTypes: MU Establishments
MU EnterprisesSUs (Estab/Ent)Submasters (EINs)
SSN_NUMIDENTOnly SSNs
(Individual business owners)
EIN_UNITS(Only EIN Units)
SSN_UNITSOnly SSN
(Form 1040, Schedule C)Units
LINKS
(Relationships Between Units)
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Kinds of Data in the BR
Unit Identifiers• Census ID
– A unique ID number that serves as the primary identifier
• EIN– IRS assigned uniquely identifies entities and links
them to both parent enterprise and the establishments that they represent
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Kinds of Data in the BR
Contact Information– Business name– Postal address– Company reporting official
• Name• Telephone & FAX number• E-mail address
– Main use is to deliver collection instruments
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Kinds of Data in the BR
Classifications• Includes:
– Industry classification - NAICS– Geographic classification – states, counties, etc.– Legal form & tax status– Entity type (ENT, MU, SU, SBM)
• Main uses: – Scope determination (frame construction)– Report form assignment– Products
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Kinds of Data in the BR
Size and Economic Activity Measures• Examples:
– Number of employees for pay period that includes March 12– Payroll – 1st quarter and annual– Sales/receipts/revenue– Total assets– Expenses– Inventory – beginning and ending
• Main uses: – Identifying active units– Scope determination (e.g., employers)– Stratifying sampling frames– CBP and other tabulations
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Kinds of Data in the BR
Control and Status IndicatorsExamples:
– Active status (identifies active units & active links)– Coverage codes– Sampling information (e.g., sampling status,
weight) – Mailing indicators
(e.g., form number, reporting medium)– Check-in & correspondence codes– Status codes for Front-End Edit processing
• Main uses:– Identifying active units– Managing data collection and processing
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BR Data Sources – Administrative Internal Revenue Service (IRS):Business Master File (BMF)
– Description: Master EIN entity directory– Data supplied:
• EIN• Owner’s SSN only for sole proprietorships• Primary (legal) and secondary (trade) name• Mailing and physical location address• Principal Business Activity Code (broad industry, rough NAICS basis)• Tax filing requirement indicators
– Main Uses: Foundation for recent entries (births); other basic identifying information for single units/EIN entities
– Frequency and annual volume:• All active EINs — In May, 24 million records • Changes — 11 monthly supplements, 18 million records
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BR Data Sources – Administrative
IRS (Cont):Payroll tax returns
– Form 941 filed quarterly by business employers– Form 943 filed annually by agricultural employers– Data supplied:
• EIN• Employment for pay period including March 12• Payroll• Tax period covered
– Main Uses: Current payroll and employment measures for single units/EIN entities
– Frequency and annual volume: Weekly files from current IRS processing, 25 million records
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BR Data Sources - AdministrativeIRS (Cont):Business income tax returns
– Types• Corporations (Form 1120 series)• Partnerships (Form 1065)• Sole proprietorships (Form 1040, Schedule C)• Selected tax-exempt organizations (Form 990 series)
– Content• EIN • Owner’s SSN for sole proprietorships • Receipts• Assets measure• Selected Expenses• Principal Business Activity Code (broad industry, rough NAICS
basis)
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BR Data Sources - Administrative
IRS (Cont):Business income tax returns (cont)
– Main Uses:• Provides basic dollar volume of business (revenue, receipts,
sales) for single units, plus
• Assets measure
• Broad industrial classification, especially for recent entries (births)
• Editing
– Frequency and annual volume: weekly files from February through December, 32 million records
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BR Data Sources - Administrative
Bureau of Labor Statistics (BLS):Description: The Census Bureau provides BLS quarterly with a file of
unclassified single units and partially classified manufacturing single units from the BR. BLS compares these records against their Business Establishment List (BEL) and returns corresponding NAICS codes whenever one is found.
Content:– EIN– NAICS code– Other incidental information
Main Uses: Industrial classifications for single unit entities that are recent entries, I.e. births
Frequency and annual volume:– Quarterly – 300,000 - 500,000 matched/classified EINs annually (50 - 55
percent success rate)
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BR Data Sources - Administrative
Social Security Administration (SSA):
Description:– SSA provides files of new businesses and organization
taxpayers (births) that file an application for employer identification, Form SS-4.
Content:– EIN– 6 digit NAICS codes for new businesses– Geographic information– Estimated employment– Other incidental information
Main Uses:– Source of births
Frequency and annual volume:– Monthly, lags Form SS-4 filing by 8-12 months– 1.8 million records
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BR Administrative Data
Source Frequency
Annual Volume
(Number of Records)
Business Master File (Complete) Annually in May of each year 24 million
Business Master File
(Supplements)Monthly except May 18 million
Payroll Tax Returns
(IRS Forms 941 & 943)Weekly (current processing of quarterly returns)
25 million
Sole Proprietorships’ Business Income Tax Returns
(IRS Form 1040, Schedule C)
Weekly (current processing of annual returns) 22 million
Other Business Income Tax Returns (Forms 990, 1065, 1120)
Weekly (current processing of annual returns)
10 million
Social Security Administration Industry Codes (Form SS-4)
Monthly 1.8 million
Bureau of Labor Statistics Industry Codes
Quarterly 1.5 million
Total 102.3 million
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BR Data Sources - Surveys
Company Organization SurveyDescription:
– Register profiling survey directed to selected multiunit enterprises. It’s necessary because administrative records do not describe in detail relationships among multi-unit enterprises, their EIN entities, and their establishments.
Content– Ownership or control by a U.S. parent– Ownership or control by a foreign parent– Inventory of establishments, verifying or collecting each
reported establishment’s primary and secondary name, physical location, EIN used for payroll tax reporting, NAICS, employment for pay period including March 12, first quarter and annual payroll, and year-end operating status
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BR Data Sources - Surveys
Company Organization Survey (Cont)
Main Uses:– Maintain information about multiunit enterprises
establishment composition, organization, and activity
Volume and frequency/timing– The survey panel covers:
• 55,000 multiunit enterprises (30% of all such enterprises and approx 80% of their employment and payroll)
• 1.0 million affiliated establishments (66% of all multiunit establishments)
– Annual survey initiated in December of the reference year with collection and processing that spans January - August
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BR Data Sources – Census
Economic CensusFor each establishment the Census provides:
– Ownership or control by a parent enterprise– Location of operation– Primary and secondary name– Physical location address– EIN used for payroll tax reporting– NAICS and Type of Operation – Employment for pay period including March 12– First quarter and annual payroll– Dollar volume of business (value of shipments, sales,
receipts, revenue)– Year-end operating status– Value of products and services by category (selectively)
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BR Data Sources – Census
Economic Census (Continued)Main Uses:
– For establishment units - the Economic Census provides:• NAICS code• Type of Operation• EIN used for payroll reporting• Company affiliation• Separate attributes for basic operating measures from the
censuses (employment, payroll, sales/receipts/revenue)– For enterprise units – the Economic Census provides the
establishment composition and organization
Frequency/timing– Every 5 years (covers years ending in ‘2’ and ‘7’)– Initiated in December of the reference year with collection
and processing that spans January - SeptemberVolume: Direct collection is from 5 million establishments
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BR Data Sources – Current SurveysCurrent Economic SurveysDescription:
– Although admin records, the COS, and the economic censuses provide the great majority of the information needed to maintain the BR, the Bureau’s monthly, quarterly, and annual surveys are also important sources of updates.
BR Uses:– For example the Annual Survey of Manufactures, which is closely
linked to the COS, provides feedback of coverage and classification information for manufacturers and their establishments.
– Similarly, monthly economic surveys are often first to identify new multiunit establishments, changes in ownership, and updated address information. These data are passed back to the BR.