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Los Angeles, Jane 5, 1950 1-7534 Mr. R. M. Suttont Referring to your letter of April 26th, file 704-55, concerning employers contributions for ¥??* S, Unonploy-ment Taxes and California State Unemployment Taxes Included in statements received from Mr. Roy A. Wehe covering reimburse ment to him for amounts paid R. L* Bertolaccl: This matter was referred to Mr. Bennett, who ad­vises as follows* "Mr. Bertolacci is not on the regular staff of Mr* Wehe although he^worke for him on special cases from time to time. He has done ho work for Mr. Wehe this year prior to the LVL&WCo. job and he may not be on Mr. Wehe’s staff during 1950 after the conclusion of the LVL&WCo. job. nI had no specific understanding with Mr. Wehe concerning M r . Bertolaccl except that Union Pacific would reimburse him for the full amount of any expense he was put to in the employment of Mr. Bertolaccl. We thought that it would be desirable to have him on M r , Wehe’s payroll rather than on the payroll of LVL&WCo. for this temporary work. *Under these circumstances, it is my opinion that the Water Company should pay the full amount of such taxes on the first $5,000*00 paid as re­imbursement to Mr. Wehe for wages paid to Mr. Bertolaccl while performing services for the Com­pany, It is vpry unlikely that Mr. Wehe will have paid Mr, Bertolaccl wages in excess of this sum during the year • * I concur in Mr. Bennett’s recommendation. Wm, Reinhardt