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Service Annual Survey
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The U.S. Census Bureau conducts the Service Annual Survey (SAS) to provide national estimates of annual revenues and expenses of establishments classified in select service sectors. Survey questionnaires are mailed to a probability sample that is regularly updated and periodically re-selected from a universe of firms located in the United States and having paid employees. The sample includes firms of all sizes and covers both taxable firms and firms exempt from Federal income taxes. Firms without paid employees (nonemployers) are included in the estimates through administrative data provided by other Federal agencies and through imputation. The Service Annual Survey provides the only source of annual receipts estimates for the service industries.
Use of this data requires Internal Revenue Service (IRS) approval. The Census Bureau will coordinate all additional necessary reviews.
Detailed Methodology
The sampling frame used for the Service Annual Survey (SAS) has two types of sampling units represented: Employer Identification Numbers (EINs) and large, multiple-establishment firms. Both sampling units represent clusters of one or more establishments owned or controlled by the same firm. The information used to create these sampling units was extracted from data collected as part of the 2002 Economic Census and from establishment records contained on the Census Bureau's Business Register as updated to December 2004. The next few paragraphs give details about the Business Register; the distinction between firms, EINs, and establishments; and the construction of the sampling units. Though important, they are not essential to understanding the basic sample design and readers may continue to the Stratification, Sampling Rates, and Allocation section.
Note: A new sample was introduced with the 2005 Service Annual Survey (SAS). The new sample was designed to produce estimates based on the 2002 North American Industry Classification System (NAICS). This section describes the design, selection, and estimation procedures for the new sample. For descriptions of prior samples, see the Service Annual Survey publications.
Stratification, Sampling Rates, and Allocation The primary stratification of the sampling frame is by industry group based on the detail required for publication. We further stratify the sampling units within industry group by a measure of size (substratify) related to their annual revenue. Sampling units expected to have a large effect on the precision of the estimates are selected "with certainty." This means they are sure to be selected and will represent only themselves (i.e., have a selection probability of 1 and a sampling weight of 1). Within each industry stratum, we determine a substratum boundary (or cutoff) that divides the certainty units from the noncertainty units. We base these cutoffs on a statistical analysis of data from the 2002 Economic Census. Accordingly, these values are on a 2002 revenue basis. We also used this analysis to determine the number of size substrata for each industry stratum and to set preliminary sampling rates needed to achieve specified sampling variability constraints on revenue estimates for different industry groups. The size substrata and sampling rates are later updated through analysis of the sampling frame.
Collected data include operating revenue for both taxable and tax-exempt firms and organizations; sources of revenue and expenses by type for selected industries; operating expenses for tax-exempt firms; and selected industry-specific items. In addition, starting with the 1999 survey, e-commerce data were collected for all industries, and export and inventory data were collected for selected industries.
Data collection begins in January following the survey year and continues for about 28 weeks. Reported data are for activities which take place during the calendar year. Prior to 1982, the survey was conducted monthly and since that time it has been conducted annually. A new sample is introduced roughly every 5 to 7 years.