FYI
----- Forwarded by Ann Ballard/Corp/Enron on 12/11/2000 11:10 AM -----

	Rex Rogers
	12/11/2000 11:01 AM
		
		 To: Ann Ballard/Corp/Enron@ENRON
		 cc: Sharon Butcher/Corp/Enron@ENRON, Kriste Sullivan/Corp/Enron@ENRON
		 Subject: Re: Excess OASDI Payments and Withholding Issue

Ann:  I do not know anything about this---I very quickly glanced at the 
materials, and what is suggested presents some pretty major  issues (Michelle 
is right---there are tax issues, corporate veil issues, and possibly other 
technical employee benefit regulatory issues).  This is clearly outside of my 
area of expertise; I think this is probably more in Sharon's, Kriste's and 
Pat's area.  Why don't we discuss this at our staff meeting on Wednesday.  If 
we need to get together sooner, please let me know.   Thanks, Rex.



	Ann Ballard
	12/11/2000 09:43 AM
		 
		 To: Rex Rogers/Corp/Enron@Enron
		 cc: 
		 Subject: Excess OASDI Payments and Withholding Issue

Rex -- Do you know anything about the below described proposal?  I do not, 
and don't know whether I should get involved.
----- Forwarded by Ann Ballard/Corp/Enron on 12/11/2000 09:41 AM -----

	Michelle Cash@ECT
	12/10/2000 04:28 PM
		 
		 To: Tony Jarrett/Corp/Enron@ENRON, Robert Eickenroht/Corp/Enron@ENRON, Ann 
Ballard/Corp/Enron@ENRON, fmackin@aol.com
		 cc: Sharon Butcher/Corp/Enron@ENRON, Kriste Sullivan/Corp/Enron@ENRON
		 Subject: Excess OASDI Payments and Withholding Issue

Do you have any thoughts/comments on the proposal discussed in the attached 
email?  Basically, the proposal is to create three holding companies that 
will house all employees of Enron and its subsidiaries/affiliates, and then 
"lease" the employees to the various business units in which they work.  
Potential issues I see include tax and corporate veil issues.

Your thoughts would be appreciated.

Michelle

---------------------- Forwarded by Michelle Cash/HOU/ECT on 12/10/2000 04:25 
PM ---------------------------


Bob Sparger@ENRON
12/01/2000 02:31 AM
To: Sharon Butcher/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, Kriste 
Sullivan/Corp/Enron@ENRON
cc: Cindy Olson/Corp/Enron@ENRON, Brad Coleman/HOU/ECT@ECT, David 
O'Dell/HR/Corp/Enron@ENRON, Janice Priddy/HR/Corp/Enron@ENRON 
Subject: Excess OASDI Payments and Withholding Issue

Sharon / Michelle / Kriste:

In late September, I sent a note on excess OASDI payment by Enron and excess 
OASDI withholdings from employees when U. S. domestic employee transfers 
occur between Enron BUs but never received a response -  note David O'Dell's 
e-mail below.  Understand Enron has looked at this area before, but feel we 
should look again to see if there are any viable alternatives to the current 
situation.

Could you please look at the attachment in my original e-mail (below) and let 
us know where we stand.how to proceed?

Thanks,

Bob


---------------------- Forwarded by Bob Sparger/Corp/Enron on 12/01/2000 
08:26 AM ---------------------------
   
	
	
	From:  David O'Dell                           11/30/2000 04:17 PM
	

To: Bob Sparger/Corp/Enron@Enron
cc: Janice Priddy/HR/Corp/Enron@ENRON 

Subject: Excess OASDI Payments and Withholding Issue

Bob,

Janice and I met with E&Y Tax Services today to discuss a number of topics 
including potential organizational structural modification strategies. One 
strategy discussed was very similar to the proposal you made back in 
September. We are planning to have the E&Y folks come back in to discuss 
these ideas in more detail. 

A couple of questions for you come to mind:
Did you ever get a response from Legal and/or Tax on your proposal?
Would you like to attend the next meeting with E&Y?

Please let me know your thoughts...

Thanks - David
---------------------- Forwarded by David O'Dell/HR/Corp/Enron on 11/30/2000 
04:13 PM ---------------------------

Bob Sparger
09/29/2000 11:11 AM


To: Sharon Butcher/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, Kriste 
Sullivan/Corp/Enron@ENRON
cc: Cindy Olson/Corp/Enron@ENRON, Brad Coleman/HOU/ECT@ECT, David 
O'Dell/HR/Corp/Enron@ENRON 
Subject: Excess OASDI Payments and Withholding Issue

Sharon / Michelle / Kriste:

The enclosed document addresses excess OASDI payment by Enron and excess 
OASDI withholdings from employees when U. S. domestic employee transfers 
occur between Enron BUs.


The current situation results in significant  Enron excess OASDI payment 
annually, and creates issues with employee due to overwithholding resulting 
in employee complaints and ill will towards HR, Payroll, and Enron.  The 
document depicts apparent options, and a potential solution, to the current 
situation.  This is viewed as an HR customer service issue to ensure Enron 
employees receive the best overall service possible in their interface to the 
HR function and systems.

 It is my understanding that Enron Executive Management feel that employee 
transferability among the BUs is important, and wishes to see more movement 
of employees (as well as thoughts and ideas) between the BUs in the future to 
enhance employee opportunities and Enron's value.  This being the case, I 
would expect the Enron cost and employee impacts and issues to be acerbated 
as additional and increased employee movement occurs in the future.  

We need Legal review of the issues and opportunities as presented in the 
document to determine a solution to the current - and pending future - 
situation, and look forward to any guidance you can provide in resolving the 
problems the current situation creates for Enron employees who transfer 
between Enron entities within a tax year and to mitigate potential future 
issues.  

If there is not a Legal obstacle, we will then go to Tax to address the 
specific tax entity issues.

Regards,

Bob