Nonemployer Establishments and Revenue
In 2021, more than three-quarters (78.1%) of construction establishments were nonemployer (e.g. without payroll). This aligns with the distribution of establishments in all U.S. industries, in which 77.8% are nonemployer. Nonemployer establishments often become payroll establishments, as a quarter of these establishments plan to hire employees at some point.
This interactive dashboard highlights data trends for nonemployer establishments and total receipts in the construction industry by state, legal form of organization, and detailed subsector. The Year and Major subsector filter(s) updates both the charts and the bolded and underlined key findings.
Following the interactive dashboard, you will find more information on the data source, definitions, chart notes, a downloadable data file, and recommended citation. This interactive data dashboard corresponds to a chapter in the upcoming PDF version of the Construction Chart Book-7th edition, which will be published this summer. Data will be updated annually as available. If you have any questions or comments, please email [email protected].
About the Data
Data come from the U.S. Census Bureau’s Nonemployer Statistics (NES) which is an annual series on businesses with no paid employees by industry, including number of establishments and total receipts.
U.S. Census Bureau. (2017). State File Nonemployer Statistics. https://www.census.gov/programs-surveys/nonemployer-statistics/data/datasets.html.
- NES data are available approximately 17 months after each reference year.
- Due to the COVID-19 pandemic, tax returns were filed later than normal which impacted when NES data were released and may have resulted in potential undercoverage/underreporting for 2019 and 2020. https://www.census.gov/programs-surveys/nonemployer-statistics/technical-documentation/methodology.html#sn1920.
Definitions and Chart Notes
Definitions
- Detailed subsector – 4-digit NAICS codes within construction (under NAICS 23).
- Establishment (in construction) – A single physical location occupied by a relatively permanent main or branch office in the construction industry (defined as NAICS 23). When multiple activities occur in one place under one ownership, a single establishment is counted by its major activity. The individual construction site and projects of such dispersed activities are not considered to be establishments.
- Legal form of organization – The legal business structure, including Sole Proprietorships, Partnerships, C-Corporations, and S-Corporations. Full definitions can be found: https://www.census.gov/programs-surveys/nonemployer-statistics/about/glossary.html. From 2008 to 2013, legal forms of organization were defined as Corporations and other corporate, Sole Proprietorships, Partnerships. Due to this definition change, the dashboard defaults to show post-2013 data.
- Major subsector – 3-digit NAICS codes within construction (under NAICS 23).
- Nonemployer – Establishments with no paid employees, has annual business receipt of $1 or more in construction, (other industries $1,000 or more), and are subject to federal income taxes. Independent contractors are an example of nonpayroll establishments.
- Receipts – Includes gross receipts, sales, commissions, and income as reported on annual tax returns. Nonemployer receipt may include commissions or earnings, while those for employer establishments only include only the values of the goods involved in the transaction. More information can be found online: https://www.census.gov/programs-surveys/nonemployer-statistics/about/glossary.html.
Chart Notes
- The dashboard defaults to 2014 to 2021 due to the legal form definition changing (see definitions for details).
- Receipt data not available in 2021.
Recommended Citation and Data File
Recommended Citation
CPWR-The Center for Construction Research and Training. [2024]. Nonemployer Establishments and Revenue [dashboard].
Data File
The Data File contains an average of all years includes and annual data. If interested in additional year combinations, please contact us at: [email protected].