1997 Economic Census of the Information Industry

SELECTED DEFINITIONS FOR THE INFORMATION INDUSTRY

ANNUAL PAYROLL ($1,000) -- 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 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 ($1,000) -- Includes receipts from customers or clients for 
services rendered, from the use of facilities, and from merchandise
sold during 1997, whether or not payment was received in 1997.  Receipts 
include royalties, license fees, and other payments from the marketing 
of intangible products (e.g., licensing the use of or granting 
reproduction rights for software, musical compositions, and other 
intellectual property).  Receipts also include the rental and leasing 
of vehicles, equipment, instruments, tools, etc.; total value of
service contracts; market value of compensation received in lieu 
of cash; amounts received for work subcontracted to others; dues 
and assessments for members and affiliates; this establishment's 
share of receipts from departments, concessions, and vending and 
amusement machines operated by others.  Receipts from services provided 
to foreign customers from U.S. locations, including services performed 
for foreign parent firms, subsidiaries, and branches are included. 
Public broadcast stations and libraries include receipts from 
contributions, gifts, grants, and income from interest, rental of 
real estate, and dividends.  
	Receipts do not include sales and other taxes collected 
directly from customers of clients and paid directly to a local, 
state, or Federal tax agency.  Also excluded are gross receipts 
collected on behalf of others; gross receipts or departments 
or concessions operated by others; sales of used equipment previously 
rented or leased to customers; proceeds from the sale of real estate 
(land and buildings), investments, or other assets (except inventory 
held for resale); contributions, gifts, grants, and income from interest, 
rental of real estate, and dividends EXCEPT for public broadcast stations 
and libraries; domestic intracompany transfers; receipts of foreign 
subsidiaries; and other non-operating income.