1. 1 The Business Register: Introduction and Overview Ronald H. Lee Ronald.H.Lee@Census.GOV@Census.GOV 301-763-6529

2. 2 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

3. 3 What is the Business Register? –Simply stated it’s the Census Bureau’s master business list

4. 4 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

5. 5 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 reporting Administrative –Employee Identification Number (EIN) – Business Taxpayer –Social Security Number (SSN) – Individual Taxpayer

6. 6 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

7. 7 Single Unit For all practical purposes, the enterprise, establishment, and EIN unit are one and the same = = =

8. 8 Simple Multiunit The simplest MU enterprise 2 establishments 1 EIN unit Very typical MU (most have only a few establishments) EIN reports both payroll and income tax

9. 9 More Complex Multiunit A more complex MU may have: Multiple EIN units One subsidiary enterprise or more

10. 10 Makeup of the BR's Business Population: 2003

11. 11 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

12. 12 Main Components of the Business Register Structure and Organization

13. 13 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

14. 14 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

15. 15 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

16. 16 Kinds of Data in the BR Size and Economic Activity Measures Examples: –Number of employees for pay period that includes March 12 –Payroll – 1 st 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

17. 17 Kinds of Data in the BR Control and Status Indicators Examples: –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

18. 18 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

19. 19 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

20. 20 BR Data Sources - Administrative IRS (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)

21. 21 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

22. 22 BR Data Sources - Administrative Bureau of Labor Statistics (BLS): Description: T he 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)

23. 23 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

24. 24 BR Administrative Data SourceFrequency Annual Volume (Number of Records) Business Master File (Complete)Annually in May of each year24 million Business Master File (Supplements) Monthly except May18 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) Monthly1.8 million Bureau of Labor Statistics Industry Codes Quarterly1.5 million Total102.3 million

25. 25 BR Data Sources - Surveys Company Organization Survey Description: –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

26. 26 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

27. 27 BR Data Sources – Census Economic Census For 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)

28. 28 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 - September Volume: Direct collection is from 5 million establishments

29. 29 BR Data Sources – Current Surveys Current Economic Surveys Description: –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.