Would you please send Janice Priddy the blank short form?  Thanks.  Michelle

 -----Original Message-----
From: 	Melodick, Kim  
Sent:	Monday, June 25, 2001 11:12 AM
To:	Cash, Michelle
Cc:	Sweet, Twanda; Priddy, Janice; Goode, Diane
Subject:	FW: agreements

Michelle, this note is in response to the 28% tax rate that is attributed to paying out employment agreements. In order to move forward on exploring solutions, Janice needs a blank employment agreement.  Can you help?

 -----Original Message-----
From: 	Priddy, Janice  
Sent:	Monday, June  25, 2001 10:58 AM
To:	Melodick, Kim
Cc:	Hudson, John
Subject:	FW: agreements

Kim,
Can you get me a copy of a blank agreement so I can send it to legal for review?  The sooner the better.  I have also contacted EBS and asked them to send me a copy of one of their agreements (with no names) for John's review.
Thanks,
Janice

 -----Original Message-----
From: 	Hudson, John  
Sent:	Monday, June 25, 2001 10:47 AM
To:	Priddy, Janice
Subject:	RE: agreements

Janice,

Can you give me more information avout the agreement given in lieu of severance pay.  What are the terms of the agreement?  What is paid to the former employee under the agreement?  What is the timing of these payments?  Are they paid in the same year the employee terminates?  I will need more information as to the nature of the proposed agreement and its terms before I can reach an answer on this.  Do you have a copy of this agreement?

Thanks,

John

 -----Original Message-----
From: 	Priddy, Janice  
Sent:	Monday, June 25, 2001 7:00 AM
To:	Hudson, John
Subject:	agreements

John,
I have been approached by HR with the following request which I would like your input.
When an employee is being terminated HR is giving them an agreement instead of severance pay.  The question is can it be taxed by the W-4 or does it have to be taxed as supplemental pay. 
My understanding is if an employee receives payments from an employer that are not part of their ordinary wages, it is considered supplemental wages and if the payment has been clearly indicated as other than ordinary wages it is taxed at the flat 28% (which will soon be 27.5%).
I would appreciate your input as to whether we could set up an agreement element in the system and tax it at the W-4 rate and not have any tax issues down the road that Enron could be held accountable, and what regulation could we use for support.
Thanks
Janice

Enron Corp.
janice.priddy@enron.com