What does S125 mean on my W 2?

A Section 125 plan, also known as a “cafeteria plan”, allows employees to convert otherwise taxable items, such as a salary, into nontaxable benefits if they so choose.

Do I need to report S125 on W 2?

The total dependent care benefits the employer paid to the employee or incurred on the employee’s behalf (including amounts from a section 125 plan) should be reported in Box 10 of Form W-2.

What Box 14 category is S125?

Section 125 cafeteria plan
There are no standard rules for what goes in box 14, and no standard codes or abbreviations. The employer can put pretty much anything they want in there. If you’re not sure what something means, you have to ask your employer. As Critter said, S125 probably refers to a Section 125 cafeteria plan.

What tax category is S125?

Section 125 is the section of the IRS tax code where the items that can be deducted from employee pay on a pre-tax basis are defined. In the context of Section 125, “pre-tax” means that a deduction is exempt from Federal Income Tax Withholding, Social Security and Medicare Taxes.

What is s125 on my paycheck?

Section 125 is part of the Internal Revenue Code that allows employees to convert a taxable cash benefit (salary) into non-taxable benefits. Under a Section 125 plan, you may choose to pay your medical premiums, unreimbursed medical expenses and dependent child care before any taxes are deducted from your paycheck.

Is s125 taxable?

Section 125 is part of the IRS Code that allows employees to convert a taxable cash benefit (salary) into non-taxable benefits. Under a Section 125 program you may choose to pay for qualified benefit premiums before any taxes are deducted from employee paychecks.

How do I report Cafe 125 on my taxes?

Box 14. Your employer may report your cafeteria plan deductions in Box 14, which is labeled “Other.” It might use the code “Section 125” or “Café 125,” and then state your pretax payments. This data is optional and can clear up any confusion you have about the amount in Box 1.

How is cafeteria plan reported on w2?

Your employer may report your cafeteria plan deductions in Box 14, which is labeled “Other.” It might use the code “Section 125” or “Café 125,” and then state your pretax payments. This data is optional and can clear up any confusion you have about the amount in Box 1.

What does CAFE mean on w2 Box 14?

Café 125 aka IRC Section 125 aka (Pretax) Health Insurance. Unless you live or work in the State of New York, this information is only that – information. You don’t need to enter it, and it won’t go anywhere.

What does CAFE mean in Box 14 of W-2?

What is S125 on a W-2 form?

If you’ve ever wondered “What is S125 on a W-2 form?” you will learn that it refers to your health insurance plan. A Section 125 program permits employees to pay for some expenses on a pre-tax basis. What Is a Section 125 Health Insurance Plan?

What is S125 on my paycheck?

If you’ve wondered “What is S125 on my paycheck?” then you have a cafeteria plan at work. This refers to a Section 125 health insurance plan, named for that section of the tax code. You’ll see most items relating to S125 in Box 14 of your W-2 form, although there are exceptions for dependent care.

What is a section 125 cafeteria plan on a W2?

A Section 125 ‘cafeteria’ plan is so-called because you get to choose your benefits from a menu, like choosing food at a cafeteria. However, while the plan may offer many benefits, ​ box 14 ​ of your W-2 shows only the benefits that apply to you.

How do I show Section 125 premiums on my W-2?

The taxable wages boxes on your annual W-2 form show only your wages from which taxes were deducted; this doesn’t apply to Section 125 contributions. If your employer wants, it can include your Section 125 premiums in Box 14 of your W-2.