Message-ID: <21539654.1075863722481.JavaMail.evans@thyme> Date: Mon, 10 Jan 2000 06:40:00 -0800 (PST) From: michelle.cash@enron.com To: sheri.jordan@enron.com Subject: Re: Payroll Company for Incoming Foreign Nationals Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Michelle Cash X-To: Sheri Jordan X-cc: X-bcc: X-Folder: \Michelle_Cash_Dec2000\Notes Folders\Sent X-Origin: Cash-M X-FileName: mcash.nsf I think we should have someone from the tax group also attend this meeting -- contact Jordan Mintz for the appropriate representative since he and I have discussed this issue already. Thanks. Michelle Enron North America Corp. From: Sheri Jordan @ ENRON 01/10/2000 02:33 PM To: Jane Allen/HOU/ECT@ECT, Michael B Jones/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@Enron, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT, Mikie Rath/HR/Corp/Enron@ENRON, Jo Ann Hill/Corp/Enron@ENRON, Sherry Lessner/Corp/Enron@ENRON, fmackin@aol.com, Dolores Lenfest/HR/Corp/Enron@ENRON cc: Subject: Re: Payroll Company for Incoming Foreign Nationals Please let me know if you are available for this meeting. Tuesday, January 25th @ 2:00 Conference Room TBD Thanks! Sheri ---------------------- Forwarded by Sheri Jordan/HR/Corp/Enron on 01/10/2000 02:19 PM --------------------------- From: Jane Allen @ ECT 12/17/99 07:57 AM To: Cynthia Barrow/HR/Corp/Enron@ENRON cc: Michael B Jones/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@Enron, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT, fmackin@aol.com@ENRON, Sheri Jordan/HR/Corp/Enron@ENRON Subject: Re: Payroll Company for Incoming Foreign Nationals That sounds great. Thanks again. Jane Cynthia Barrow@ENRON 12/16/99 06:06 PM To: Jane Allen/HOU/ECT@ECT cc: Michael B Jones/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@Enron, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT, fmackin@aol.com, Sheri Jordan/HR/Corp/Enron@ENRON Subject: Re: Payroll Company for Incoming Foreign Nationals I'd like to wait until we get legal opinion first. Once we know there are no DOL/ERISA issues (or at least some we can manage), we can set-out the process flow and then the companies. I'll coordinate a conference call -- but let's do this after the holidays. So many of the players are not here at the same time and I am sure payroll has as many year end issues as we do right now. (Sheri, please contact Michelle Cash and Pat Mackin to get available dates and then set-up a conference call including the above people as well as Mikie Rath and Dolores Lenfest. We probably need to do this as soon as possible in the new year. Can you also include Jane Pleli, Joann Hill and Sherry Lessner, there may be issues with us changing current environment prior to 7/1/2000 that we need to consider.) Thanks Cb From: Jane Allen @ ECT 12/16/99 04:30 PM To: Michael B Jones/HR/Corp/Enron@ENRON cc: Cynthia Barrow/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@Enron, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT Subject: Re: Payroll Company for Incoming Foreign Nationals Okay, so what is our next step? Who can get the company set up? Thanks, Jane Michael B Jones@ENRON 12/16/99 03:40 PM To: Jane Allen/HOU/ECT@ECT cc: Cynthia Barrow/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@Enron, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT Subject: Re: Payroll Company for Incoming Foreign Nationals For the employees to be provided with domestic benefits, they could just be placed on the standard domestic payroll, whereas the employees not to have domestic benefits could be on the new company. As Cynthia states below, the new company (as a whole) would not be adopting benefit plans. Logistically, there would just need to be different procedures for setting up the new hires on the correct company. Also, the administration of the cross charges will be much easier once SAP Payroll comes online 7/1. Currently, there is some manual intervention when charging from one company (like Expat Services) to the appropriate accounting company. Mike From: Jane Allen @ ECT 12/16/99 11:20 AM To: Cynthia Barrow/HR/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT cc: David O'Dell/HR/Corp/Enron@Enron, Cynthia Barrow/HR/Corp/Enron@ENRON, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT, Michael B Jones/HR/Corp/Enron@ENRON Subject: Re: Payroll Company for Incoming Foreign Nationals Good point, we would want to pick and choose as some may not want to remain on home country payroll or a home country payroll may not exist. Michelle, can you comment from a legal perspective? Thanks, Jane Cynthia Barrow@ENRON 12/16/99 11:16 AM To: Jane Allen/HOU/ECT@ECT cc: David O'Dell/HR/Corp/Enron@Enron, Cynthia Barrow/HR/Corp/Enron@ENRON, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT Subject: Re: Payroll Company for Incoming Foreign Nationals The not making them eligible for domestic benefits is easy. The new payroll company will simply not adopt the plans. I am assuming that the number of employees (nor associated demographics) in this company will not create a discrimination problem. One question though, will we treat all foreign nationals the same or will you want to pick and choose who receive domestic benefits and who does not. If the answer is yes to this we will probably need to run some legal traps. Let me know if we can help. Cb From: Jane Allen @ ECT 12/16/99 10:52 AM To: Michael B Jones/HR/Corp/Enron@ENRON cc: David O'Dell/HR/Corp/Enron@Enron, Cynthia Barrow/HR/Corp/Enron@ENRON, Mary Joyce/HR/Corp/Enron@Enron, David Oxley/HOU/ECT@ECT Subject: Payroll Company for Incoming Foreign Nationals As Enron expands globally, we are faced with a growing issue of more and more foreign nationals entering the US on varied lengths of assignment. For some, it is necessary that they remain on their home country payroll to maintain retirement benefits, as our domestic benefits structure (401(k), cash balance, etc.) does not provide them with equivalent benefits based on the fact they will return to their home country to retire. If they remain on their home country payroll system, we are struggling with a convenient method to have them pay US taxes (both income and possibly social security) as well as receive US $. Currently, David Oxley is on such an arrangement. He is paid by the UK a portion of his pay to maintain UK benefits. The remainder of his salary is paid on US payroll. This allows him to pay in FIT withholding. No FICA/Medicare is necessary due to the totalization agreement with the UK. Unfortunately, this created some extra work on the domestic benefits group as they had to code the HR system not to provide him with Flex dollars, health/welfare and retirement benefits. We indicated in his employment agreement that he was not eligible for these benefits. I am looking for an easier and more efficient way to do this. Would it be possible to create a payroll company here in the US for arriving foreign nationals that remain on their home country payroll that would allow them a mechanism to: receive a portion of their pay in US $ into a US account pay in FIT and possibly FICA/Medicare not make them eligible for domestic benefits I would appreciate you and the others I have copied looking into this. Thanks, Jane