Auxiliary establishments are classified based on the primary support function they perform. The census classifies twelve support functions. These functions are:
484000 Truck transportation 493100 Warehouse and storage 514210 Data processing services 541100 Legal services 541200 Accounting, tax preparation, bookkeeping, and payroll services 541700 Scientific research and development services 541800 Advertising and related services 561300 Employment services 561610 Investigation, guard and armored car services 561700 Services to buildings and dwellings 811000 Repair and maintenance 949999 Unclassified auxiliary establishments
This sector excludes establishments often called central administrative offices or corporate, subsidiary and regional managing offices. Sector 55 Management of Companies and Enterprises includes these establishments.
Several establishments classified in subsector 486; industry groups 2211, 2212, 5221, 5241; and industries 51331 and 52519 provide support services for other establishments of the same enterprise. When the support service is an integral part of the enterprise's business (e.g., loan processing departments of a bank, underwriting departments of an insurance carrier, or billing department of a power company), we classify the establishment in the respective NAICS Sector as an operating establishment.
We do not classify agriculture, mining, construction, and manufacturing establishments primarily producing goods or providing services for establishments of the same enterprise as auxiliaries, but are classified based on their primary activity. Also, separate establishments primarily engaged in long distance trucking, stevedoring, water transportation, railroad transportation, or pipe line transportation for other establishments of the same enterprise are classified in the corresponding transportation industry. However, we classify establishments primarily providing local trucking; warehousing; communications or electric, gas and sanitary services for other establishments of the same enterprise as auxiliaries.
In Public Administration, establishments engaged in performing central administrative and managerial activities are classified as operating establishments in the Public Administration Sector. Establishments primarily engaged in performing other auxiliary activities for establishments in Public Administration, such as warehouses, automotive maintenance shops, and recreation facilities, are classified as auxiliary establishments. However, government establishments are excluded from the economic census.
An enterprise is a business, service, or other organization consisting of one or more establishments under common, direct or indirect ownership or control. An enterprise is the highest level of establishment aggregation. An enterprise may vary in composition ranging from a single establishment company (e.g., corporation, partnership, etc.) to a complex family of parent and subsidiary companies (or firms) under common ownership or control.
An enterprise must have at least one operating establishment to have an establishment classified as an auxiliary. An operating establishment is one that produces or distributes goods or performs services for the public or other business firms. The particular legal organization of an enterprise has no bearing on the classification of an establishment as an auxiliary. So, an enterprise may consist of one or more "legal entities" and thus have one or more Employer Identification (E.I.) number. Some enterprises, in fact, have separate E.I. numbers set up exclusively for these administrative and service support services provided by auxiliaries.
For purposes of classification, an auxiliary should be considered a separate establishment if it provides support services to at least one other establishment of the same enterprise at a different location. An auxiliary at the same physical location as one of the enterprise's operating establishment is considered a separate establishment if: (1) it also services at least one other establishment of the enterprise, (2) the data for the operating establishment and the auxiliary at the same location is significant, and (3) separate establishment type data can be reported. If an auxiliary and operating establishment at the same location cannot meet all three conditions, the entire location is treated as one establishment and is classified by its primary activity measured by employment.
