Annual Payroll
General
Definition
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. 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.
Sector-Specific
Information
Finance and
Insurance sector. Excludes commissions paid to
independent (nonemployee) agents, such as
insurance agents.
Information;
Professional, Scientific, and Technical Services;
Administrative and Support and Waste Management
and Remediation Services; Educational Services;
Health Care and Social Assistance; Arts,
Entertainment, and Recreation; and Other Services
(Except Public Administration) sectors. 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.
Manufacturing
sector. Also excluded are payments to members of
Armed Forces and pensioners carried on the active
payrolls of manufacturing establishments.
Mining
sector. Also included are cash equivalents of
compensation paid in kind and payments received
on a ton, car, or yard basis; excluded are
payments to members of Armed Forces and
pensioners carried on the active payroll of
mining establishments. Also excluded are royalty
payments to unions and costs of smithing,
explosives, fuses, electric cap lamps, and mine
supplies used in production, development, and
exploration work but charged to employees and
deducted from their wages.
Real Estate
and Rental and Leasing sector. Excludes
commissions paid to independent (nonemployee)
agents, such as real estate agents.
Retail Trade
and Accommodation and Foodservices sectors.
Includes tips and gratuities received by
employees from patrons and reported to employers
and excludes payrolls of departments or
concessions operated by other companies at the
establishment.
|