The Business Register: Introduction and Overview

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The Business RegisterIntroduction and Overview

• Ronald H. Lee
• Ronald.H.Lee_at_Census.GOV
• 301-763-6529

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BR Introduction and Overview

• What the Business Register Is and How We Use It
• Key Concepts and Definitions
• Registers Main Components
• Its Content
• Its Data Sources

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What is the Business Register?

• Simply stated its the Census Bureaus master
  business list

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

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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
  reporting
• Administrative
• 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 unit are one and the same



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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

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More Complex Multiunit

• 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
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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
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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 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

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BR Data Sources Administrative

• Internal Revenue Service (IRS)
• Business Master File (BMF)
• Description Master EIN entity directory
• Data supplied
• EIN
• Owners 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 - 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
• Owners 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 Survey
• Description
• Register profiling survey directed to selected
  multiunit enterprises. Its 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 establishments 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 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)

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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 -
  September
• Volume Direct collection is from 5 million
  establishments

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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
  Bureaus 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.