SC92LWP.EXP

1992 CENSUS OF SERVICE INDUSTRIES

Data Item Definitions

=>ESTABLISHMENTS

An establishment is a single physical location at which business is conducted.  It is
not necessarily identical with a company or enterprise, which may consist of one
establishment or more.  The count of establishments in this publication represents
the number in business at the end of the year.  A comparison of the number of
establishments in business at the end of the year versus the number active any time
during the year for the United States as a whole is presented by kind-of-business
group in appendix G.

Census of Service Industries figures represent a summary of reports for individual
establishments rather than companies.  When a census report was received from a
large employer indicating that business was conducted at more than one location,
each such location was treated as a separate establishment.  Conversely, when
administrative records of other Federal agencies were used instead of a census
report or when a company included in the 10-percent sample of small employers
reported operations at more than one location, only one establishment was tallied
in the publications.  Consequently, the number of establishments published in the
1992 Census of Service Industries is understated.

An attempt was made to measure a part of this understatement by analyzing the
10-percent sample of small employers.  There were 83,733 such service firms
subject to Federal income tax in business at any time during 1992.  Of this number,
74,989 responded to the number of locations inquiry and reported operations at
77,850 locations.  By weighting these variables by a factor of 10 and assuming that
firms in the sample that did not return their report would respond as those that did
report, this sample representing 865,641 firms would have operated a total of
1,044,247 establishments.  Also, there were 5,232 such service firms exempt from
Federal income tax in business at any time during 1992.  Of these, 4,884 responded
to the number of locations inquiry and reported operations at 5,142 locations.  By
weighting these variables by a factor of 10 and making the same assumption as
above, this sample representing 98,277 firms would have operated a total of
102,699 establishments.

When two activities or more were carried on at a single location under a single
ownership, all activities generally were grouped together as a single establishment. 
The entire establishment was classified on the basis of its major activity and all data
for it were included in that classification.  However, when distinct and separate
economic activities (for which different industry classification codes were
appropriate) were conducted at a single location under a single ownership, and
when conditions prescribed by the SIC manual for recognizing the existence of
more than one establishment were met, separate establishment reports for each of
the different activities were obtained in the census.

Leased service departments (separately owned businesses operated as departments
or concessions of other service establishments or of retail businesses, such as a
separately owned shoeshine parlor in a barber shop, or a beauty shop in a
department store) are treated as separate service establishments for census
purposes.  Leased retail departments located in service establishments (e.g., a gift
shop located in a hotel) are considered separate retail establishments.

=>FIRMS

A firm is a business organization or entity consisting of one domestic establishment
(location) or more under common ownership or control.  All establishments of
subsidiary firms are included as part of the controlling firm.  For the economic
census, the terms "firm" and "company" are synonymous.

=>RECEIPTS (BASIC DOLLAR VOLUME MEASURE FOR TAXABLE
ESTABLISHMENTS)

Includes receipts from customers or clients for services rendered, from the use of
facilities, and from merchandise sold during 1992 whether or not payment was
received in 1992, except for health practitioners and legal, architectural,
engineering, and surveying services, which reported on a cash basis (payments
received in 1992 regardless of when services were rendered).  Excise taxes on
gasoline, liquor, tobacco, etc., which are paid by the manufacturer or wholesaler
and passed on in the cost of goods purchased by the service establishment, are also
included.  Receipts from leasing of vehicles, equipment, etc. marketed under
operating leases are included in receipts figures as well as the fair sales value of
merchandise marketed in 1992 under capital, finance, or "full payout" leases. 
Receipts also include the total value of service contracts, amounts received for
work subcontracted to others, and dues and assessments from members and
affiliates.

Receipts are net after deductions for refunds and allowances for merchandise
returned by customers.  Receipts do not include sales, occupancy, admissions, or
other taxes collected from customers and remitted directly by the firm to a local,
State, or Federal tax agency, nor do they include income from such sources as
contributions, gifts, and grants; dividends, interest, and investments; or sale or
rental of real estate.  Also excluded are rents from and receipts (gross as well as
the establishment's share) of departments and concessions which are operated by
others; sales of used equipment rented or leased to customers; commissions
from vending machine operators; and other nonoperating income such as royalties,
franchise fees, etc.

Receipts in this report do not include service receipts of manufacturers,
wholesalers, retail establishments, or other businesses whose primary activity is
other than service.  They do, however, include receipts other than from services
rendered (e.g., sale of merchandise to individuals or other businesses) by
establishments primarily engaged in performing services and classified in the
service industries.

=>REVENUE (BASIC DOLLAR VOLUME MEASURE FOR TAX-EXEMPT
FIRMS)

Includes revenue from customers or clients for services rendered and merchandise
sold during 1992, whether or not payment was received in 1992.  Also included
are income from interest, dividends, gross contributions, gifts, grants (whether or
not restricted for use in operations), rents, royalties, dues and assessments from
members and affiliates, and receipts from fundraising activities.  Receipts from
taxable business activities of firms exempt from Federal income tax (Unrelated
Business Income) are also included in revenue.

Revenue does not include sales, admissions, or other taxes collected by the
organization from customers or clients and paid directly to a local, State, or
Federal tax agency; income from the sale of real estate, investments, or other
assets (except inventory held for resale); gross receipts of departments,
concessions, etc., that are operated by others; and amounts transferred to
operating funds from capital or reserve funds.

=>EXPENSES

Expenses include payroll, employee benefits, interest, rent, payroll taxes, cost of
supplies used for operation, depreciation expenses, fundraising expenses,
contracted or purchased services, and other expenses charged to operations during
1992.

Expenses in this report exclude outlays for the purchase of real estate; construction
and all other capital improvements; funds invested; assessments or dues paid to the
parent or other chapters of the same organization; and, for fundraising
organizations, funds transferred to charities and other organizations.

=>ANNUAL PAYROLL

Payroll includes all forms of compensation, such as salaries, wages, commissions,
bonuses, vacation allowances, sick-leave pay, employee contributions to qualified
pension plans, and the value of payments in kind (e.g., free meals and lodgings)
paid during the year to all employees.  Tips and gratuities received by employees
from patrons and reported to employers are included.  For corporations, payroll
includes amounts paid to officers and executives; for unincorporated businesses, it
does not include profit or other compensation of proprietors or partners.  Payroll
is reported before deductions for social security, income tax, insurance, union
dues, etc.  This definition of payroll is the same as that used by the Internal
Revenue Service on form 941.

=>FIRST-QUARTER PAYROLL

This item consists of payroll, as defined above, paid to persons employed at any
time during the quarter January to March 1992.

=>PAID EMPLOYEES FOR PAY PERIOD INCLUDING MARCH 12

Paid employees consist of the full- and part-time employees, including salaried
officers and executives of corporations, who were on the payroll during the pay
period including March 12.  Included are employees on paid sick leave, paid
holidays, and paid vacations; not included are proprietors and partners of
unincorporated businesses.  The definition of paid employees is the same as that
used on IRS form 941.

=>AUXILIARY ESTABLISHMENTS

Each company included in this census was asked to identify and separately report
auxiliary locations whose primary functions were to manage, administer, service,
or support the activities of the other establishments of the company. Data
presented in this report do not include auxiliary establishments.  Data for
auxiliaries are presented in a subsequent report issued as part of the 1992
Enterprise Statistics reports.