The Business Register:
Introduction and Overview
Ronald H. Lee
Ronald.H.Lee@Census.GOV
301-763-6529
1
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
2
What is the Business Register?
– Simply stated it’s the Census
Bureau’s master business list
3
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
4
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
5
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
Enterprise
Establishment
=
EIN
(Payroll and/
or Income
Tax)
7
Simple Multiunit
The simplest MU enterprise
•2 establishments
•1 EIN unit
Enterprise
EIN
•Very typical MU
(Payroll &
Income Tax)
(most have only a few
establishments)
•EIN reports both payroll
and income tax
Establishment
Establishment
8
More Complex Multiunit
Enterprise
(Parent)
EIN
(Consolidated
Income Tax)
Establishment
Subsidiary
Establishment
Establishment
Establishment
EIN
EIN
(Payroll Only)
(Payroll Only)
Establishment
Establishment
Establishment
EIN
(Payroll Only)
Establishment
Establishment
A more complex MU may have:
 Multiple EIN units
 One subsidiary enterprise or more
9
Makeup of the BR's
Business Population: 2003
Active
Enterprises
%
All Enterprises
23,871,291 100
24
Employers, total 5,725,291
23
Single-Unit
5,536,364
1
Multiunit
188,927
76
Nonemployers
18,146,000
Active
Establishments
25,398,904
7,252,904
5,536,364
1,716,540
18,146,000
%
100
29
22
7
71
Employees
(mid-March)
114,363,400
114,363,400
49,516,080
64,847,320
0
%
100
100
43
57
0
10
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_UNITS
EMPLOYER_UNITS
ADDRGEOS
Types: Establishments
Enterprises
ARUs/Other Segments
Types: MU Establishments
MU Enterprises
SUs (Estab/Ent)
Submasters (EINs)
Types: Physical location
BMF mail
Economic Census mail
Foreign
LINKS
(Relationships Between Units)
EIN_UNITS
SSN_UNITS
SSN_NUMIDENT
(Only EIN Units)
Only SSN
(Form 1040, Schedule C)
Units
Only SSNs
(Individual business owners)
12
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
15
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
–
–
–
–
Identifying active units
Scope determination (e.g., employers)
Stratifying sampling frames
CBP and other tabulations
• Main uses:
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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
17
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 - 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)
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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)
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
Quarterly
Codes
Total
22 million
1.5 million
102.3 million
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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
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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 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.
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