1997 Economic Census of Educational Services

SELECTED DEFINITIONS FOR EDUCATIONAL SERVICES:

Annual Payroll -- Payroll includes all forms of compensation, 
such as salaries, wages, commissions, dismissal pay, bonuses, 
vacation allowances, sick-leave pay, and employee contributions to 
qualified pension plans paid during the year to all employees. Also 
included are tips and gratuities received by employees from patrons 
and reported to employers and the value of payments in kind (e.g., 
free meals and lodging). If an employee works at more than one 
location, the payroll is included in the one location where they 
spend most of their time. Also included are salaries of professional 
service organizations or associations which operate under state 
professional corporation statutes and file a corporate Federal income 
tax return.  Excluded are payrolls of departments or concessions 
operated by other companies at the establishment. 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 (IRS) on Form 941.

Number Of Establishments -- An establishment is a single 
physical location at which business is conducted and/or services 
are provided. It is not necessarily identical with a company or 
enterprise, which may consist of one establishment or more. 
Economic census figures represent a summary of reports for 
individual establishments rather than companies. For cases 
where a census report was received, separate information was 
obtained for each location where business was conducted.  When 
administrative records of other Federal agencies were used 
instead of a census report, no information was available on the 
number of locations operated. Each economic census establishment 
was tabulated  according to the physical location at which the 
business was conducted. The count of establishments represents 
those in business at any time during 1997.  
	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, separate establishment reports 
for each of the different activities were obtained in the census. 
An establishment is included in the census if it is an employer, 
the establishment has $1,000 in payroll, and was in operation at 
any time during 1997. 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.

Number Of Paid Employees For Pay Period Including March 12 -- 
Paid employees consists of full-time 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; and 
members of a professional service organization or association which 
operates under state professional corporation statutes and files a 
corporate Federal income tax return.  Not included are proprietors 
and partners of unincorporated businesses, and employees of 
departments or concessions operated by other companies at the 
establishment.  The definition of paid employees is the same as 
that used on IRS Form 941.

Receipts/Revenue ($1,000) -- Receipts (basic dollar volume 
measure for service establishments of firms subject to Federal income 
tax). Includes receipts from customers or clients for services rendered, 
from the use of facilities, from merchandise sold during 1997 whether 
or not payment was received in 1997.  For advertising agencies, travel 
industries, and other service establishments operating on a commission 
basis, receipts include commissions, fees, and other operating income, 
NOT gross billings and sales. 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.  The establishments share of receipts from departments, 
concessions, and vending and amusement machines operated by others are 
included as part of receipts.  Receipts also include the total value of 
service contracts, market value of compensation received in lieu of cash, 
amounts received for work subcontracted to others, and dues and assessments 
from members and affiliates.  Receipts from services provided to foreign 
customers from U.S. locations, including services preformed for foreign 
parent firms, subsidiaries, and branches are included.  
	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 receipts (gross) of departments and 
concessions which are operated by others; sales of used equipment rented 
or leased to customers;  domestic intracompany transfers; receipts of 
foreign subsidiaries; and other nonoperating income, such as royalties, 
franchise fees, etc. Receipts 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 firms exempt from 
Federal income tax). Includes revenue from customers or clients for 
services rendered and merchandise sold during 1997, whether or not 
payment was received in 1997, and gross sales of merchandise, minus 
returns and allowances. Also included are income from interest, dividends, 
gross rents (including display space rentals and share of receipts from 
departments operated by other companies), gross contributions, gifts, 
grants (whether or not restricted for use in operations), royalties, dues 
and assessments from members and affiliates, commissions earned from the 
sale of merchandise owned by others (including commissions from vending 
machine operators), and gross 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.