Form FAQs

 MI-21201 - Coal Mining

 Categories

• Sector Questions
• Form Questions

 Questions

• Sector Questions

1.  What is a mineral establishment?
2.  What activities should be included when I report mining activity?
3.  I believe that I am a service provider yet I received a mining form.
4.  My company is not a mining company, what should I do?
5.  How do I complete my "nationwide" report?



• Form Questions

6.  What should I report for the Sales, Shipments, Receipts or Revenue (Item 5)?
7.  What employees do I include in my Employment and Payroll (Item 7)?
8.  What qualifies as a production worker (Item 7)?
9.  What are "all other employees" (Item 7)?
10.  What does Item 7D - Employer's Cost for Fringe Benefits, include?
11.  What do I include in Annual Payroll (Item 7)?
12.  What should I include in Plant Hours Worked by Production, Development, and Exploration workers (Item 7C)?
13.  How should I report Inventories (Item 9 and 10)?
14.  What is LIFO (Item 9 and 10)?
15.  What do I include in Capital expenditures for Depreciable Assets (Item 13)?
16.  What is included in current operating expenses (Item 15)?
17.  What are considered "costs" (Item 16)?
18.  My electricity costs are included in my lease so I do not have these costs available to report. What should I report (Item 16 line A4)?
19.  Since my electricity costs are included in my lease I do not have detailed information on the quantity of purchased electricity my establishment uses. What should I report (Item 16B)?
20.  What should I report in Cost of Purchased Fuels Consumed for Heat, Power, or the Generation of Electricity (Item 16, line A3)?
21.  What does the Cost of Purchased Electricity include (Item 16, line A4)?
22.  What does Cost of Materials Contract Work Done for You by Others include (Item 16, line A5)?
23.  What do I do if I don't see any of my establishment's products listed in Item 22?

 Answers

• Sector Questions




1.  What is a mineral establishment?

A mineral establishment is a single physical location where mineral operations are performed. A separate report must be filed for each mineral establishment operated by the company during any part of 2007. This includes mines under development. The operator of the establishment should complete the report, whether the operator is the owner or is operating it under lease or contract.

EXAMPLES:

• Mine only (a mine may be a lode operation, pit, beach, underground, or placer deposit)
• Mine and concentration plant (such plants may be engaged in milling, washing, agglomeration, or other types of mineral concentration)
• Concentration plant only
• Mines or sites under exploration, development, or maintenance
• Plants under construction

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2.  What activities should be included when I report mining activity?

INCLUDE:

• Operations of a mine together with its associated shops, auxiliary units, yards, mill, beneficiating, concentration or washing plant, and offices
• A mill, beneficiating, or concentration plant not at the site of the mines served, or operated under separate management from the mines, together with its associated shops, yards, auxiliary units, and offices

INCLUDE WHEN CARRIED ON AT THE SAME PHYSICAL LOCATION:

• Generating energy for the mine or plant (include a central power plant serving two or more mines or plants with the one for which the power plant furnished the most electric energy)
• Maintenance of mine, plant, and equipment
• Receiving, shipping, storage, research, record keeping, health, safety, cafeteria, and other services

EXCLUDE:

• Operation of company stores, boardinghouses, bunkhouses, and recreational facilities.
• Separate sales branches, research laboratories, and general administrative offices.
• Sintering plants operated in conjunction with blast furnaces
• Recovery of metals through smelting or refining (except for mercury)

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3.  I believe that I am a service provider yet I received a mining form.

The mining sector does include establishments providing support work to operators of mineral properties, including oil and gas wells.

EXAMPLES:

• Exploration for minerals and prospect and test drilling
• Sinking mine shafts and overburden stripping
• Mining metal ores, coal, stone, and other minerals for another's account, including the loading of culm-bank material
• Pumping and draining mines and quarries
• Installing production equipment

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4.  My company is not a mining company, what should I do?

If the location shown in the address box of the report form is not a mining company, please indicate the nature of your business in the remarks section and return the form to us.

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5.  How do I complete my "nationwide" report?

INCLUDE:

• All nationwide service activities performed under your current Employer Identification Number (EIN) for 2007
• All activities performed in the United States and adjoining offshore areas (offshore areas applicable for forms MI-21351 and MI-21352 only)
• Separate state and offshore area (if applicable) information in Item 26B.

"Nationwide" reports are only sent to establishments primarily performing service work for operators on a contract or fee basis.

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• Form Questions




6.  What should I report for the Sales, Shipments, Receipts or Revenue (Item 5)?

INCLUDE:

• All products physically shipped form this establishment during 2007
• Receipts for services
• Value of resales
• Other miscellaneous receipts

EXCLUDE:

• Freight and excise taxes
• Nonoperating income such as interest dividends, or the sale of fixed assets

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7.  What employees do I include in my Employment and Payroll (Item 7)?

Report the number of employees and subsequent payroll, both full and part time, whose payroll was reported on IRS form 941 (Employer's Quarterly Federal Tax Form Return), and filed under Employer Identification Number (EIN) shown in the mailing address or corrected in Item 1.

INCLUDE:

All persons on paid sick leave, paid holidays, paid vacation during any part of the pay period that includes the 12th of March. If this establishment is a corporation include the officers of the corporation. Also include, employees paid on a per ton, car, or yard basis.

EXCLUDE:

• Members of the Armed Forces and pensioners carried on your active pay rolls.
• Proprietors or partners if this is an unincorporated concern.
• Temporary staff obtained from a staffing service
• Leased employees (human resources and human resource management services provided to client business by leasing companies operating co-employment relationships). Such companies specialize in providing a wide range of human resource and personnel management duties such as payroll, accounting, payroll tax preparation and filing, benefits relations.
• Full or part-time leased employees whose payroll was filed under an employee leasing companies EIN.

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8.  What qualifies as a production worker (Item 7)?

Workers (up through the working-supervisor level) engaged in services closely associated with production and development operations such as: manual work;tool use and machine operation; materials and products, loading and hauling; mineral properties care; exploration and development work; storage, shipping, maintenance, repair, and guard services; auxiliary production for own use (e.g., power plant); record keeping; and regular maintenance and repairs.

EXCLUDE:

• Employees of contractors

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9.  What are "all other employees" (Item 7)?

INCLUDE:

• Nonproduction personnel at this establishment engaged in supervision above the working-supervisor level and employees engaged in activities such as: sales, advertising, purchasing, finance: highway trucking and other transportation; credit, collection, executive, legal, clerical, and routine office functions; personnel (including cafeteria, medical, etc.); professional and technical work
• Force-account construction employees on your payroll engaged in construction of major additions or alterations to your facilities who are utilized as a separate workforce

EXCLUDE:

• Employees of contractors

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10.  What does Item 7D - Employer's Cost for Fringe Benefits, include?

INCLUDE:

• Employer contributions for all programs required under Federal and State legislation
• Insurance premiums on hospital and medical plans
• Life insurance premiums
• Premiums on supplementary accident and sickness insurance
• Union negotiated contracts
• Programs supported by joint employer-employee contributions
• Items generally considered as deferred rather than current income to employees and not subject to withholding tax
• Payments made directly to retired employees or their survivors that do not pass through a fund

When reporting payments for insurance, report net payments, i.e., gross payments less any offsetting dividends, refunds, or other reductions in premiums.

EXCLUDE:

• Losses on company-operated cafeterias and snack bars
• Cost of in-plant medical services
• Cost of free parking lots
• Discounts on employee purchases
• Cost of uniforms and other work clothing supplied to employees and similar expenditures
• Wages and salaries reported in Item 7B
• Payments to employees out of a fund to which payments or allocations are made by the company
• Costs for training and partially subsidized housing and safety

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11.  What do I include in Annual Payroll (Item 7)?

Report the payroll that was included on IRS Form 941 (Employer's Quarterly Federal Tax Form Return), and the payroll portion of the fee paid to a professional employer organization as part of co-employment or leased employment arrangement.

INCLUDE: Deductions for an employee's Social Security contributions, withholding taxes, group insurance premiums, union dues, and savings bonds.

Include in the gross earnings:

• Commissions
• Dismissal pay
• Paid bonuses
• Employee contributions to pension plans such as a 401(k)
• Vacation and sick leave pay, the cash equivalent of compensation paid in kind

Also include salaries of officers of this establishment, if incorporated.

EXCLUDE:

• Payments to proprietors or partners, if an unincorporated concern
• Payments to members of the Armed Forces, and pensioners carried on your active payroll
• Royalty payments to unions
• Cost 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

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12.  What should I include in Plant Hours Worked by Production, Development, and Exploration workers (Item 7C)?

INCLUDE: All hours worked or paid for, except hours paid for vacations, holidays or sick leave. If an employee elects to work during the vacation period, report only actual hours worked by the employee.

Overtime should be reported as actual hours worked and not as straight time equivalent hours.

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13.  How should I report Inventories (Item 9 and 10)?

Inventory values that are attributable to this establishment's operations should be reported in Item 9 regardless of where the inventories are stored.
Report the value of the inventories by valuation method in Item 10.

Inventories that are centrally stored for a multi-establishment company (operates at more than one physical location) should be assigned to each responsible establishment as if separately owned by them.

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14.  What is LIFO (Item 9 and 10)?

Last In - First Out method of inventory valuation.

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15.  What do I include in Capital expenditures for Depreciable Assets (Item 13)?

Capital Expenditures are a capital outlays that are chargeable to the fixed asset account and for which depreciation or amortization reserves are maintained.



INCLUDE:

• Capital Expenditures during the year that were actually made during the year, not the final value of equipment put in place or the buildings completed during the year.
• Capital improvements and new additions in progress are considered assets, as well as capital expenditures.
• Capital Expenditures during the year for new construction whether on contract or by your own work force.
• Value of all machinery and equipment, buildings, and capitalized improvements and repairs whether purchased or produced by employees of your own company
• Value of any machinery and equipment or structure transferred to the use of the of this establishment by the parent company or one of its subsidiaries



Capital Expenditures for New and Used Buildings, Structures, Machinery and Equipment:

INCLUDE:

• Buildings and structures directly related to mineral exploration, development, and production
• Machinery, such as hoists, cranes, crushers, separators, and power plants
• Values from construction by your own employees, where capitalized
• Exploration, development, and production machinery
• Transportation and office equipment
• Equipment such as excavators, loaders, locomotives, tractors, hoists, drills, compressors, pumps, and treatment plant machinery, as well as furniture and fixtures for offices, cafeterias, and change rooms
• Value of equipment produced and used at this establishment
• All mining, loading, transportation, and similar equipment for use at mines
• Replacements as well as additions to new capacity

EXCLUDE:

• Company houses and general recreational facilities
• Value of land



Capital Expenditures for Mineral Exploration and Development:

INCLUDE:

• All development and exploration outlays that were charged to capital or Office of Minerals Exploration account
• Capitalized expenditures for entries, shafts, rail and other road construction, test boring, surveying, etc.



Capital Expenditures for Mineral Land and Rights:

INCLUDE:

• All capital expenditures for acquiring either undeveloped or developed acreage
• Capitalized lease bonuses and any other outlays necessary to acquire leases, mineral rights, and fee lands incident to mineral exploration, development, or production.

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16.  What is included in current operating expenses (Item 15)?

INCLUDE:

• Expenses for mineral properties charged to current accounts
• Acquisition costs for mineral land and rights that were not capitalized
• Cost of royalty payments related to mineral production
• Labor costs whether on a contract basis or by your own forces associated with exploration and development or the acquisition of mineral properties

EXCLUDE:

• Lease rents

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17.  What are considered "costs" (Item 16)?

Cost is the delivered cost, which is defined as the amount paid or payable after discounts and including freight and other direct charges incurred by the establishment in acquiring the materials.

INCLUDE:

• All materials received for consumption
• Items charged to both the current and capital accounts
• Items consumed during 2007 although purchased earlier
• Minerals received from other mines for preparation
• Supplies consumed for production, development, exploration, maintenance, and repair of mine, plant and equipment, or in-plant construction
• Supplies furnished without charge to contractors or sold to employees for use at this establishment
• Fuels and electric energy consumed, or cost of products resold
• Contract work

EXCLUDE:

• Supplies received during 2007 that were not consumed (These should be reported in Inventories.)
• Cost of minerals mined and also processed at the establishment in 2007
• Services such as advertising, telephone, fax, cable, insurance, development, and research rendered by other establishments
• Services of engineering, management, marketing, legal, and other professional consultants, etc.
• Depreciation and depletion charges against plant and equipment
• Rent and rental allowance, interest payments, royalties, and use of patent fees
• Supplies, parts, or machinery produced at this establishment
• Extraordinary losses such as fire and flood
• Labor costs of your employees

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18.  My electricity costs are included in my lease so I do not have these costs available to report. What should I report (Item 16 line A4)?

Contact your landlord, leasing agent or building management and obtain approximate costs or a percentage of the lease estimate.

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19.  Since my electricity costs are included in my lease I do not have detailed information on the quantity of purchased electricity my establishment uses. What should I report (Item 16B)?

Contact your landlord, leasing agent or building management and obtain and approximate amount of electricity consumed in kilowatt-hours. Estimates are fine.

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20.  What should I report in Cost of Purchased Fuels Consumed for Heat, Power, or the Generation of Electricity (Item 16, line A3)?

Report the total amount of actually paid or payable during the year for all fuels consumed for heat, power, or the generation of electricity.

INCLUDE:

• Fuels consumed at this establishment, but produced at another establishment of your company. Assign commercial values to them.
• Fuels used to power onsite trucks, forklifts, or motor vehicles
• Anthracite, lignite, bituminous and sub bituminous coal, coke, natural and manufactured gas, gasoline, wood, purchased steam, and all other fuels.

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21.  What does the Cost of Purchased Electricity include (Item 16, line A4)?

Report the total amount actually paid or payable for electric energy purchased during the year from other companies, or received from other establishments of your company.

EXCLUDE: The value of electricity generated and used at this establishment.

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22.  What does Cost of Materials Contract Work Done for You by Others include (Item 16, line A5)?

INCLUDE:

• Payments for supplies and equipment furnished by the contractor incidental to the contract work
• Services performed in the operation or development of this establishment, such as pumping, tunneling, shaft sinking, stripping, boring test holes, shop work, repair work, and construction
• An estimate of the value of the service if part of the payment to a contractor was in material produced
• Payment to contractors who were engaged in mining for your own account

EXCLUDE:

• Payments to miners paid on a per ton, car, yard, or footage basis.
• Payments to suppliers who mined for their own account on property owned or leased by them and who paid royalties either directly or indirectly on the ores mined.
• Payments to other establishments for the cost of custom processing of ores minded by this establishment

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23.  What do I do if I don't see any of my establishment's products listed in Item 22?

Enter a description for the product(s), quantity (if applicable) you produce and the value in the "All other products made in this establishment" portion of Item 22. Report separately for each major kind of product produced.

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