As was discussed at the 9/22/97 payroll meeting, effective with check date 8/1/97, when the payroll system was enhanced to accommodate the pre-tax retirement deduction the following errors occurred:

• Some employees stopped accumulating FICA wage before actually reaching the FICA maximum wage.
  
  At this time we have not been able to identify the logic that caused this error. Not all employees who should have reached FICA maximum were affected.
  
  
• Employees in Tier 1 who reached the FICA maximum, did not have their retirement contribution increased to 5% until the following pay cycle.
  
  We will be working with the Retirement & Benefits Division to compile a list of those affected. Employees will be contacted by the Retirement division regarding the contributions they owe.
  
  This will affect an employees taxable wage and W-2's may have to be adjusted at year end by the Payroll Services division.

The computer programs that caused these two errors were fixed for check date 9/26/97.

We apologize for any inconvenience this may have caused.

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