Nonsubstantive Change Request (Expense Items Expansion)

October 1, 2012
MEMORANDUM FOR

Paul Bugg, OMB

FROM

Ronald Farrar, Chief of Health Care and Consumer Services Branch,
Service Sector Statistics Division
James Burton, Chief of Information and Business Services Branch,
Service Sector Statistics Division

SUBJECT:

Service Annual Survey (SAS) Non-Substantive Change Request

Earlier this year, the Services Annual Survey (0607-0422) was approved a three-year
extension. We would like to make a slight change to the SAS forms for survey year 2013 and
beyond. Historically, SAS has collected expanded expense detail items in years ending in 2 and 7,
corresponding with years in which the economic census is conducted. These expanded expense
details will be collected next year in survey year 2012. In the years between Economic
Censuses, SAS has collected a smaller suite of expense detail items. In order to promote consistency
in reporting across all years of the five-year sample and thereby improve the quality of the data, it
was decided to include the expanded expense details on the form in every year of the sample, not
just in years ending in 2 and 7.
The respondent burden between expanded expense detail years and other years will
increase to 290,368 hours annually based on the item expansion, an increase of 4,182 hours over
current. This change might actually reduce burden over time because of the consistency of the form
items from year to year.
This change will affect all SAS forms. Pages 2-4 of this document is an example of the
‘Expense’ section of a SY2011 form, followed by the expanded ‘Expense’ Section of the SY2012 form
(draft) on pages 5-7. As you will see, the Expanded Expense section on the SY2012 form asks for
more detail on the ‘Employer’s Cost for fringe benefits’ and ‘Expensed Purchased Services’ sections
on the form.
After the SY2012 forms are mailed out in early 2013, the forms will be available on our
website at: http://www.census.gov/services/sas/get_forms.html

Form SA-71000E

Page 5

(11-22-2011)

14 OPERATING EXPENSES
What were the operating expenses for this firm in 2011 and 2010?
Exclude:
• Transfers made within the company.
• Capitalized expenses.
• Interest.
• Bad debt.
• Impairment.
• Income tax.
Gross annual payroll
Include salaries and wages, commissions, dismissal pay, bonuses, employee contributions to Social Security, income
tax withholding, union dues, group insurance premiums, savings bonds, cash equivalent in-kind, allowances, holiday
pay, vacation pay, sick leave, stock purchase plans, and employee contributions to pension plans. Exclude the cost of
leased employees, employer's cost for fringe benefits, and temporary staff obtained from temporary help services. For
unincorporated businesses, exclude profit or other compensation of proprietors or partners.
All other operating expenses
Include travel and entertainment; postage, shipping or delivery services; warehousing and storage services; royalties;
security services; janitorial and grounds maintenance services; purchased transportation with operators; and other
expenses not reported elsewhere.
$ Bil.

71000053

1.

2.

Mil.

2011
Thou.

Dol.

$ Bil.

Mil.

2010
Thou.

Dol.

Personnel Costs
a. Gross annual payroll - Total annual
Medicare salaries and wages for all
employees as reported on this firm's IRS
Form 941, Employer's Quarterly Federal
Tax Return, line 5(c) for the four quarters
that correspond to the survey period or
IRS Form 944 Employer's Annual Federal
Tax Return, line 4(c). Include the spread
on stock options that are taxable to
employees as wages . . . . . . . . . . . . .
b. Employer's cost for fringe benefits Employer's cost for legally required
programs and programs not required
by law. Include insurance premiums
for hospital plans, medical plans, and
single service plans (e.g., dental, vision,
prescription drugs); premium equivalents
for self-insured plans and fees paid
to third-party administrators (TPAs);
defined benefit pension plans; defined
contribution plans (e.g., profit sharing,
401K, stock option plans); and other fringe
benefits (e.g., Social Security, workers'
compensation insurance, unemployment
tax, state disability insurance programs,
life insurance benefits, Medicare).
Exclude employee contributions . . . . .
c. Temporary staff and leased employee
expense - Total costs paid to Professional
Employer Organizations (PEOs) and
staffing agencies for personnel. Include
all charges for payroll, benefits, and
services . . . . . . . . . . . . . . . . . . . . .
Expensed Materials, Parts, and Supplies
(not for resale)
a. Expensed equipment - Expensed
computer hardware and other equipment
(e.g., copiers, fax machines, telephones,
shop and lab equipment, CPUs, monitors).
Report packaged software in line 3a.
Report leased and rented equipment in
line 3c
. . . . . . . . . . . . . . . . . . . . .

CONTINUE WITH

14

ON PAGE 6

CONTINUE ON PAGE 6

Form SA-71000E

Page 6

(11-22-2011)

14 OPERATING EXPENSES - Continued
$ Bil.

2.

3.

71000061

4.

Mil.

2011
Thou.

Dol.

$ Bil.

Mil.

2010
Thou.

Dol.

Expensed Materials, Parts, and Supplies
(not for resale) - Continued
b. Expensed purchases of other
materials, parts, and supplies Materials and supplies used in providing
services to others; materials and parts
used in repairs; office and janitorial
supplies; small tools; containers and other
packaging materials; and motor fuels . . .
Expensed Purchased Services
a. Expensed purchases of software Purchases of prepackaged, custom coded,
or vendor customized software. Include
software developed or customized
by others, web-design services and
purchases, licensing agreements,
upgrades of software, and maintenance
fees related to software upgrades and
alterations . . . . . . . . . . . . . . . . . . .
b. Purchased electricity and fuels
(except motor fuels) - If the cost of
electricity and heating fuels (e.g., natural
gas, propane, oil, coal) are included in
lease or rental payments, report in line 3c
c. Lease and rental payments - For land,
buildings, offices, structures, machinery,
equipment, and other tangible items.
Include lease and rental of transportation
equipment without operators and
penalties incurred for broken leases.
Exclude capital and financing lease
agreements and licensing/leasing of
software . . . . . . . . . . . . . . . . . . . .
d. Purchased repair and maintenance Include expensed repair and maintenance
to buildings and integral building
components (e.g., elevators, heating
and cooling systems), structures, offices,
machinery, vehicles, equipment, and
computer hardware. Exclude materials,
parts, and supplies used for repair and
maintenance performed by this firm's
employees. Report janitorial and grounds
maintenance services in line 4c . . . . . .
e. Purchased advertising and
promotional services - Include
marketing and public relations services
.
Other Operating Expenses
a. Depreciation and amortization
charges - Include depreciation charges
taken against tangible assets owned and
used by this firm, tangible assets and
improvements owned by this firm within
leaseholds, tangible assets obtained
through capital lease agreements, and
amortization charges against intangible
assets (e.g., patents, copyrights).
Exclude impairment . . . . . . . . . . . . .
b. Governmental taxes and license fees Payments to government agencies for
taxes and licenses. Include business and
property taxes. Exclude income taxes
and sales and excise taxes collected from
customers . . . . . . . . . . . . . . . . . . .

CONTINUE WITH

14

ON PAGE 7

CONTINUE ON PAGE 7

Form SA-71000E

Page 7

(11-22-2011)

14 OPERATING EXPENSES - Continued
$ Bil.

4.

Other Operating Expenses - Continued
c. All other operating expenses - All
other operating expenses not reported
above, unless specifically excluded in
the general instructions. Include office
postage paid and package delivery.
Exclude purchases of merchandise for
resale and non-operating expenses. If
this item is greater than 20% of the
total operating expenses, specify
the primary source of the expenses
below

5.

TOTAL OPERATING EXPENSES
Sum of lines 1a through 4c . . . . . . . . . .

Mil.

2011
Thou.

Dol.

$ Bil.

Mil.

2010
Thou.

Dol.

15 and 16 Not Applicable.
17 REMARKS - Please use this space to explain any significant year-to-year changes, to clarify responses, or indicate where
data were estimated.

18 CONTACT INFORMATION
Name of person to contact regarding this report (Please print)

71000079

Address (Number and street)

Title

City

State

ZIP Code

Area code
Telephone
E-mail address

Number

-

Extension

Area code
Fax

Number

-

Website address

Public reporting burden for this collection of information is estimated to average 3-6 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to: Paperwork Project 0607-0422, U.S. Census Bureau, 4600 Silver Hill Road, AMSD-3K138, Washington, DC 20233. You
may e-mail comments to [email protected]; use "Paperwork Project 0607-0422" as the subject. Please include form name and number
in all correspondence. Respondents are not required to respond to any information collection unless it displays a valid approval number from
the Office of Management and Budget. This 8-digit number appears in the top right corner on the front of this form.

Form SA-71000E

Page 4

(DRAFT)

14 OPERATING EXPENSES
What were the operating expenses for this firm in 2012?
Exclude:
• Transfers made within the company.
• Capitalized expenses.
• Interest.
• Bad debt.
• Impairment.
• Income tax.
Gross annual payroll
Include salaries and wages, commissions, dismissal pay, bonuses, employee contributions to Social Security, income
tax withholding, union dues, group insurance premiums, savings bonds, cash equivalent in-kind, allowances, holiday
pay, vacation pay, sick leave, stock purchase plans, and employee contributions to pension plans. Exclude the cost of
leased employees, employer's cost for fringe benefits, and temporary staff obtained from temporary help services. For
unincorporated businesses, exclude profit or other compensation of proprietors or partners.
All other operating expenses
Include travel and entertainment; postage, shipping or delivery services; warehousing and storage services; royalties;
security services; janitorial and grounds maintenance services; purchased transportation with operators; and other
expenses not reported elsewhere.
Mark "X"
if None

71000046

1.

Personnel Costs
a. Gross annual payroll - Total annual Medicare salaries and
wages for all employees as reported on this firm's IRS Form 941,
Employer's Quarterly Federal Tax Return, line 5(c) for the four
quarters that correspond to the survey period or IRS Form 944
Employer's Annual Federal Tax Return, line 4(c). Include the
spread on stock options that are taxable to employees as wages .
b. Employer's cost for fringe benefits - Employer's cost for
legally required programs and programs not required by law:
1. Health insurance - Insurance premiums for hospital plans,
medical plans, and single service plans (e.g., dental, vision,
prescription drugs). Includepremium equivalents for selfinsured plans and fees paid to third-party administrators
(TPAs). Exclude employee contributions . . . . . . . . . . . . .
2. Pension plans:
a. Defined benefit pension plans - Costs for both qualified
and unqualified defined pension plans. Pension plans
that specify the benefit to be paid to employees upon
retirement, generally either a specific amount or a
percentage of compensation. Employer contributions
are based on actuarial computations that include the
employee's compensation and years of service and are not
allocated to specific accounts maintained for employees . .
b. Defined contribution plans - Costs under defined
contribution plans. Pension plans that define the employer
contributions to a separate account provided for each
employee. The employee "benefit" at retirement depends
on the amount contributed and the results of the account's
activity. Examples include profit sharing plans, money
purchase (e.g., 401k, 403b) and stock bonus plans (e.g.,
ESOPs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Payroll taxes, employer paid insurance premiums
(except health), and other employer benefits - Include
legally-required fringe benefits (e.g., Social Security, workers'
compensation insurance, unemployment tax, state disability
insurance programs, Medicare). Include benefits for life
insurance, "quality of life" benefits (e.g., childcare assistance,
subsidized commuting), employer contributions to pre-tax
benefit accounts (e.g., health savings accounts), education
assistance, and other benefits not specified above. Exclude
disbursements from trusts or funds to satisfy health insurance
claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTINUE WITH

14

$ Bil.

Mil.

2012
Thou.

Dol.

1821

1841

1842

1843

1844

ON PAGE 5
CONTINUE ON PAGE 5

Form SA-71000E

Page 5

(DRAFT)

14 OPERATING EXPENSES - Continued
Mark "X"
if None

1.

2.

71000053

3.

Personnel Costs - Continued
c. Temporary staff and leased employee expense - Total costs
paid to Professional Employer Organizations (PEOs) and staffing
agencies for personnel. Include all charges for payroll, benefits,
and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expensed Materials, Parts, and Supplies (not for resale)
a. Expensed equipment - Expensed computer hardware and other
equipment (e.g., copiers, fax machines, telephones, shop and lab
equipment, CPUs, monitors). Report packaged software in line 3a.
Report leased and rented equipment in line 3i . . . . . . . . . . . .
b. Expensed purchases of other materials, parts, and supplies
- Materials and supplies used in providing services to others;
materials and parts used in repairs; office and janitorial supplies;
small tools; containers and other packaging materials; and motor
fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expensed Purchased Services
a. Expensed purchases of software - Purchases of prepackaged,
custom coded, or vendor customized software. Include software
developed or customized by others, web-design services and
purchases, licensing agreements, upgrades of software, and
maintenance fees related to software upgrades and alterations . .
b. Data processing and other purchased computer services
- Include web hosting, computer facilities management services,
computer input preparation, data storage, computer time rental,
optical scanning services, and other computer-related advice
and services, including training. Exclude expensed integrated
systems, repair and maintenance of computer equipment, payroll
processing and credit card transaction fees, and expenses for
telecommunication services (e.g., Internet, connectivity, telephone)
c. Purchased communication services - Telephone, cellular, and
fax services; computer-related communications (e.g., Internet,
connectivity, online), and other wired and wireless communication
services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d. Purchased repair and maintenance to machinery and
equipment - Expensed repair and maintenance services to
machinery, vehicles, equipment, and computer hardware.
Exclude materials, parts, and supplies used for repairs and
maintenance performed by this firm's employees . . . . . . . . . .
e. Purchased repairs and maintenance to buildings,
structures, and offices - Include repair and maintenance to
integral parts of buildings (e.g., elevators, heating and cooling
systems). Exclude materials, parts, and supplies used for repairs
and maintenance performed by this firm's employees. Report
janitorial and grounds maintenance services in line 4c . . . . . . .
f. Purchased electricity - If the cost of electricity is included in
lease or rental payments, report in line 3j . . . . . . . . . . . . . . .
g. Purchased fuels (except motor fuels) - Fuel for heating,
power, or generating electricity (e.g., natural gas, propane, oil,
coal). If the costs are included in lease or rental payments, report
in line 3j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
h. Water, sewer, refuse removal, and other utility payments
- Include the cost of hazardous waste removal. If the costs of
these utilities are included in a lease or rental payment, report in
line 3j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i. Lease and rental payments for machinery, equipment, and
other tangible items - Include lease and rental of transportation
equipment without operators and penalties incurred for broken
leases. Exclude capital and financing lease agreements and
licensing/leasing of software . . . . . . . . . . . . . . . . . . . . . . .
j. Lease and rental payments for land, buildings, structures,
store spaces, and offices - Include penalties incurred for
broken leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
k. Purchased advertising and promotional services - Include
marketing and public relations services . . . . . . . . . . . . . . . .
CONTINUE WITH

14

$ Bil.

Mil.

2012
Thou.

Dol.

1823

1824

1825

1826

1845

1846

1848

1849

1850

1851

1852

1853

1854

1830

ON PAGE 6
CONTINUE ON PAGE 6

Form SA-71000E

Page 6

(DRAFT)

14 OPERATING EXPENSES - Continued
Mark "X"
if None

3.

4.

Expensed Purchased Services - Continued
l. Purchased professional and technical services - Include
management consulting, accounting, auditing, bookkeeping,
legal, actuarial, payroll processing, architectural, engineering, and
other professional services. Exclude salaries paid to your own
employees for these services . . . . . . . . . . . . . . . . . . . . . .
Other Operating Expenses
a. Depreciation and amortization charges - Include depreciation
charges taken against tangible assets owned and used by this
firm, tangible assets and improvements owned by this firm
within leaseholds, tangible assets obtained through capital lease
agreements, and amortization charges against intangible assets
(e.g., patents, copyrights). Exclude impairment . . . . . . . . . . .
b. Governmental taxes and license fees - Payments to
government agencies for taxes and licenses. Include business
and property taxes. Exclude income taxes and sales and excise
taxes collected from customers . . . . . . . . . . . . . . . . . . . . .
c. All other operating expenses - All other operating expenses
not reported above, unless specifically excluded in the general
instructions. Include office postage paid and package delivery.
Exclude purchases of merchandise for resale and non-operating
expenses. If this item is greater than 20% of the total
operating expenses, specify the primary source of the
expenses below

$ Bil.

Mil.

2012
Thou.

Dol.

1855

1831

1832

1859

5.

TOTAL OPERATING EXPENSES
Sum of lines 1a through 4c . . . . . . . . . . . . . . . . . . . . . . . . .

1900

15 and 16 Not Applicable.
17 REMARKS - Please use this space to explain any significant year-to-year changes, to clarify responses, or indicate where
data were estimated.

18 CONTACT INFORMATION
Name of person to contact regarding this report (Please print)

71000061

Address (Number and street)

Title

City

State

ZIP Code

Area code
Telephone
E-mail address

Number

-

Extension

Area code
Fax

Number

-

Website address

Public reporting burden for this collection of information is estimated to average 3-6 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to: Paperwork Project 0607-0422, U.S. Census Bureau, 4600 Silver Hill Road, AMSD-3K138, Washington, DC 20233. You
may e-mail comments to [email protected]; use "Paperwork Project 0607-0422" as the subject. Please include form name and number
in all correspondence. Respondents are not required to respond to any information collection unless it displays a valid approval number from
the Office of Management and Budget. This 8-digit number appears in the top right corner on the front of this form.