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<DIV dir=ltr align=left><B><FONT face=Arial size=2><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial">Please review
your E370-06-1 report, received in January.<o:p></o:p></SPAN></FONT></B></DIV>
<DIV class=Section1>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><B><FONT face=Arial size=2><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial">By February
15<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal><FONT face=Calibri color=blue size=2><SPAN
style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><B><FONT face=Arial size=2><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial">Request a new
Form W-4 from exempt employees.</SPAN></FONT></B><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> Ask for a new Form W-4,
Employee’ Withholding Allowance Certificate, from each employee who claimed
exemption from income tax withholding last year.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><B><FONT face=Arial size=2><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial">On February
16</SPAN></FONT></B><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><B><FONT face=Arial size=2><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial">Exempt Forms W-4
expire. </SPAN></FONT></B><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Any Form W-4 previously given to
Payroll claiming exemption from withholding has expired. Begin withholding
for any employee who previously claimed exemption from withholding, but has not
given you a new Form W-4 for the current year. If the employee does not
give you a new Form W-4, withhold tax as if he or she is single, with zero
withholding allowances. However, if you have an earlier Form W-4 for an
employee that is valid, withhold based on the earlier Form
W-4.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Thanks,<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><st1:PersonName w:st="on"><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Kathyron D
Parsons</SPAN></FONT></st1:PersonName><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">, OSPS
Accountant</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Dept. of Admin Servs/State
Controllers Division</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Phone: (503) 378-6777
X243</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Fax: (503)
378-3518 </SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P></DIV></BODY></HTML>