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<div class=Section1>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>July 16, 2008<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>TO: All Departments<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>FR: Payroll Office<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>RE: Payments Subject to
Supplemental Tax Withholding Rate When Paid Separately<o:p></o:p></span></font></p>
<div style='mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;
padding:0in 0in 1.0pt 0in'>
<p class=MsoNormal style='border:none;padding:0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'><o:p> </o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>This information is being sent to you as a reminder due to
recent inquiries regarding the taxation of supplemental wages. In
accordance with the Internal Revenue Service Publication 15 (Circular E,
Employer’s Tax Guide) and State of California Employment Development (DE
44MM, 2008 California Employer’s Guide), wages made under these Description
of Service codes (DOS) are always subject to the supplemental tax withholding
rates when they’re paid separately from the employee’s primary pay
schedule. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>When supplemental and regular wages are combined for the
current month, the income tax withholding is figured on a single
payment. Withholding will be at the graduated rates based on
marital status and allowances claimed on the W4.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I. If the following DOS codes are paid
separately, withholding for Federal tax is at a flat rate of 25% and <b><span
style='font-weight:bold'>6% for State tax</span></b> (no other percentages are
allowed)<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=1 type=A>
<li class=MsoNormal style='mso-list:l3 level1 lfo5'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>SUMMER SALARY<o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>1.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>OLN - Additional
Compensation-Research<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>2.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>OLT - Additional
Compensation-Teaching<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>3.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>OLS - Additional
Compensation-Teaching<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>4.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>ADL - Additional
Compensation-UNEX<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=2 type=A>
<li class=MsoNormal style='mso-list:l3 level1 lfo5'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>OVERTIME <o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal style='text-indent:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>1. OTP - Overtime Premium<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.25in;text-indent:.25in'><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'>2. OTS - Overtime
Straight<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-indent:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>3. OCT - On Call Time<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-indent:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>4. CMP - Comp Time Paid<o:p></o:p></span></font></p>
<p class=MsoNormal style='text-indent:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>5. OTH - Overtime At Half<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=3 type=A>
<li class=MsoNormal style='mso-list:l3 level1 lfo5'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>OTHER<o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 1.
LSI - Lump Sum Incentive<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 2.
SMP - Supplemental Military Pay<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 3.
RIP - Relocation Incentive Pay<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 4.
VTL - Voluntary Term-Lump Sum<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 5.
VTS - Voluntary Term-Severance<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>
6. ITL - Involuntary Term-Lump Sum<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 7.
ITS - Involuntary TRM Severance<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 8.
SAE - Severance-Active-Employee<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 9.
EHA - Employee Housing Allowance<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 10.
FHA - Faculty Housing Allowance<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 11.
MV2 - Moving Expense AP<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 12.
BXC - Academic Student Employee Childcare<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 13.
MOV - Non Exclusive Move Expense-Pay<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 14.
PSZ - Staff Phys Shift Incentive<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>II. If the following DOS codes are paid
separately, withholding for Federal tax is at a flat rate of 25% and <b><span
style='font-weight:bold'>9.3% for State tax</span></b> (no other percentages
are allowed).<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=1 type=A>
<li class=MsoNormal style='mso-list:l2 level1 lfo6'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> INCENTIVE/DEVELOPMENT
AWARDS<o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>5.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>TIA - Team
Incentive Award<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>6.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>SRD - Staff
Recognition Award<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>7.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>PDA - Prof
Development Award<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>8.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>SPA - Special
Performance Award<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>9.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>NDI - Non Discretion
Award SRDP<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>10.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>SAP -
Student Award Program<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>11.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>LEA - Local Employee
Award<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>12.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>NDL - Non Discretion
Award Local<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>13.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>SAL -
Student Award Program-Local<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.75in;text-indent:-.25in;mso-list:l0 level3 lfo4'><![if !supportLists]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><span
style='mso-list:Ignore'>14.<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'> </span></font></span></span></font><![endif]><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>TIL –
Team Incentive Award Local<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<ol style='margin-top:0in' start=2 type=A>
<li class=MsoNormal style='mso-list:l2 level1 lfo6'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>BONUS<o:p></o:p></span></font></li>
</ol>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 1.
BON – Bonus (hire & refer) <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 2.
ABP – Student Bonus – SRDP<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 3.
ABL – Student bonus – Local<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>
4. HBO – Hiring Bonus<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 5.
RFB – Referral Bonus<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> 6.
SGB – Sign-On Bonus<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>If you have any questions, please call the Payroll office at
X1943.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Thanks, <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Roberta Nardico<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Payroll Supervisor <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> <o:p></o:p></span></font></p>
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