1997 Economic Census of Professional, Scientific and Technical Services

SELECTED DEFINITIONS FOR PROFESSIONAL, SCIENTIFIC AND TECHNICAL 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 con-cessions 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, and 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.