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assignment letter to Mr. Smith (Raytheon’s June 1, 1998 assign-
ment letter), the receipt of which Mr. Smith acknowledged by
signing that letter. Raytheon’s June 1, 1998 assignment letter,
inter alia, described certain benefits that Raytheon was to
provide to Mr. Smith as a result of Mr. Smith’s working on
Johnston Island. That letter stated, inter alia: “Johnston
Island is not tax exempt; therefore, standard tax obligations
apply.” Raytheon included with Raytheon’s June 1, 1998 assign-
ment letter certain documents (Raytheon’s enclosure to Raytheon’s
June 1, 1998 assignment letter) that set forth certain terms and
conditions of Mr. Smith’s employment with Raytheon. Among the
documents in Raytheon’s enclosure to Raytheon’s June 1, 1998
assignment letter was a document entitled “TAX TREATMENT OF
JOHNSTON ISLAND ASSIGNMENT EXPENSES” (Raytheon’s description of
the tax treatment of Johnston Island assignment expenses), which
provided:
Employee W-2 and Tax
Assignment Expense Tax Classification Withholding Treatment
1. Travel, in-transit Relocation expense Subject to W-2
reporting-Not subject
to withholding if
deductible
2. Remote site differential Compensation Taxable
3. Subsistence and quarters Business travel expense Taxable
4. Off-island rotation Personal travel Taxable
5. Emergency leave Compensation Taxable
NOTE: You should also consult your personal tax advisor for application to your
particular tax considerations.
Throughout 1999 and 2001, Mr. Smith continued to work for
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Last modified: May 25, 2011