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.
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.