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V <br /> P4r» Neal Evans <br /> October 13, 1980 <br /> Page 2 <br /> Estimated Annual Savings to Orange Count And 1'ts Employees <br /> Count Savin s Em loo e_e 5avin s Total <br /> $5,175 $5,175 $10,350 <br /> Simply stated, orange County and its employees are currently <br /> overpaying Social Security Taxes, FICA Z is a payroll ac- <br /> counting modification that will allow the County and its <br /> employees to save those funds that are unnecessarily being <br /> paid to the Social Security Administration. <br /> 'FICA II <br /> FICA II is a payroll accounting modification authorized under <br /> Section 209(f) of the Social Security Act and its private sector, <br /> counterpart, IRC Section 3121 (a) (6) . These sections provide <br /> that FICA tax and other payroll taxes may be computed on a lower' <br /> wage base if the employer pays the employee's FICA tax directly <br /> to the Social security Administration rather than paying the <br /> employee and then withholding the FICA tax from his pay. , <br /> MICA. proposes to provide orange County with financial and <br /> management services designed to convert the County's personnel <br /> systems to allow the County's payment of the employee social <br /> Security contribution share as allowed by 5ecti.on 209(f) of <br /> the Social Security Act. More specifically, MICA wills <br /> (a) Provide a detailed management analysis and plan <br /> of implementation to give the County, a q. <br /> cation of the savings and identification of all <br /> costs involved. <br /> (b) provide proper training of and education to super:-- <br /> visory and management personnel to include the <br /> County's personnel, payroll and data ,processing <br /> staff. <br /> (c) provide technical supervision for computer and/or <br /> systems modification and testing, including file <br /> layouts; computer algorithms and logical sequences <br /> necessary to properly code and modify the existing <br /> computer programs to comply with the law and the <br /> mathematical necessities involved in FICA. Ix. <br /> Actual coding and program modification will be <br /> done.by the County's data processing staff or <br /> service bureau staff. <br /> (d) Provide proper employee education for the prepara- <br /> tion and future optimum use of FICA II.. This <br />