the on-continent empioyees were. Subsequent to that date, Old Age Benefit Taxes (F.I.C.A.) were deducted from the overseas earnings under the amended previsions of the law. The overseas earnings, however, continued to be exempt from State Unemployment Taxes. As of June 30, 1951, a total amount of $281,824.84 of employees’ and employer's Social Security Taxes had been paid, or accrued for payment, on overseas and on-continent employees’ earnings. PER DIEM AND TRAVEL Processing of Per Diem and Travel Expense payments was designated as a function of a Travel Unit of the Accounts Payable Section. Procedures were developed adhering to established company policy, as re- flected by Appendix “A” of the Contract. Unusual circumstances not specifically covered by the provisions of Contract Appendix "A" were resolved by application of the rules contained in the government pamph- let "Standardized Government Travel Regulations.” No problems of appreciable complexity were encountered in processing Per Diem and Travel payments. Extreme caution in processing Per Diem payments was necessary, however, because of the varying Fer Diem rates at different locations, as prescribed by Contract Appendix “A." Another factor contributing to the difficulty of procesrzing Per Diem payments was the number of time zones (including the International Date Line) entered, or crossed, in travel necessary in connection with the Contract. The periodic adoption of Daylight Saving Time in only a few of the zones further complicated the matter. These difficulties were resolved by the simple expedient of commerting departure and arrival time, as reflected by the traveler's itinerary, te the equivalent of prevailing time at Los Angeles (1.e., Pacific Standard Time or Pacific Daylight Sewing Time). From September 24, 1948, date of issuance of Travel Order No. 1, through June 30, 1951, payments were processed by 5,312 checks, in an amount approximating $600,000.00 and covering 6,285 Travel Expense State- ments. These were exclusive of transportation by military and naval surface craft and’ planes. TRUSTRE FOR TRAVEL FUND In accordance with the provisions of Contract Appendix "A" and Section 2(c) of the Employment Agreement executed by each overseas em- ployee at the time of hire, defaulting Jobsite employees were required to assume the cost of all return transportation to the point of hire and all living and other expenses in connection therewith, frem the date of termination. The Contract Appendix and the Employment Agreement also provided for weekly payroll deductions as partial security to guarantee compliance on the part of the employee. It was also stipulated that upon satisfactory completion of the designated term of employment, all amounts withheld for this purpose automatically reverted to the employee for pay- ment from the “Trustee for Travel Fund" Account at the time of final termination. 11-32