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