State of California

  M E M O R A N D U M

  REFERENCE CODE:
  98-043

  DATE:
  September 14, 1998

  TO:
  Accounting Officers
  Employee Relations Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  Medicare Deductions

  CONTACT:
  Michael T. Navarro, Labor Relations Officer
  (916) 324-0505, CALNET 454-0505
  FAX: (916) 322-0765
  OFFICE VISION: DPA(MTNAVARR)
  INTERNET: MichaelNavarro@DPA.CA.GOV


  The Department of Personnel Administration (DPA) was 
  recently advised that as a result of payroll errors, the 
  State employer has failed to properly deduct Federally 
  mandated Medicare taxes from approximately 850 employees.  
  The amount that is to be recovered from each affected 
  employee may be less than $20 to as much as $3100.
  
  If your agency has already initiated collection procedures, 
  you must halt collections until discussions with the unions 
  are completed.
  
  Given the number of employees affected, the varying amounts 
  that are owed, and the need to conform with the 
  requirements of Government Code 19838 prior to initiating 
  any collections, we have determined that a more prudent 
  course of action would be to meet with all concerned 
  exclusive representatives and agree on a consistent and 
  uniform collection methodology that would ensure that all 
  similarly situated employees are treated in like manner.
  
  DPA Labor Relations staff will schedule these meetings with 
  the affected unions as soon as possible and will inform you 
  of the 
  resulting agreements.  In the meantime, should you have 
  questions regarding this matter and its effects on a 
  particular bargaining unit, please contact the appropriate 
  Labor Relations Officer.  General questions regarding this 
  issue may be directed to me at (916) 324-0505. 
  
  
  
  
  Michael T. Navarro
  Labor Relations Officer