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  • 1.  Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 11:28
    I used to know this but can't find it on the W2 instructions.  CPA says use code DD but I believe that is total cost of medical premium for ACA reporting.

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    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------


  • 2.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 11:30
    Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only - they don't affect the numbers in your tax return

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    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
    Appleton WI
    920-996-1176
    ------------------------------



  • 3.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 11:42
    @Mary Jo Krueger  Agreed.  Maybe not included on W2 since it only reduces Income Tax and is not a deferred comp plan? ​​

    ------------------------------
    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------

    Original Message


  • 4.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 11:51
    The I.R.S. rules include the minimum number of W-2 forms submitted where this information is required - don't recall right off.

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    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------

    Original Message


  • 5.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 15:20
    Cafeteria Plans go in box 14, and the number of W-2’s is reporting on the accompanying W-3.

    Sent from my iPhone
    Sue Bennett
    Bennett/Porter & Associates, Inc.

    ------Original Message------

    The I.R.S. rules include the minimum number of W-2 forms submitted where this information is required - don't recall right off.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------


  • 6.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 16:03
    @Sue Bennett  What Box 14 Code letter?​

    ------------------------------
    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------

    Original Message


  • 7.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 23:28
    Bob Pfahnl - because it is an "optional" box, there aren't standard codes like there are for Box 12.  But you are limited to the number of characters you can use - depending on how large the dollar amount is that you are reporting in that Box.  Most of the time I just use "MD" for the description next to the dollar amount.

    In the last couple of years there has been confusion over reporting Cafeteria Plans in Box 12 or Box 14.  Prior to the requirement to report Medical on the W-2's in Box 12 with the Code DD, we always used Box 14 for Cafeteria Plans.  I think the official rule is that "all medical expenses" should be recorded in Box 12 regardless of whether paid by the employee or employer (and depending on how many W-2's are being reported as well) but we still have employers who choose to report Cafeteria Plans in Box 14 because that's the way it has always been done.  So far, the government has not questioned any of them but I really think it is somewhat of a gray area still.

    Sent from my iPhone
    Sue Bennett
    Bennett/Porter & Associates, Inc.



    ------Original Message------

    @Sue Bennett  What Box 14 Code letter?​

    ------------------------------
    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------


  • 8.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-28-2019 23:34
    Oh - and I should have mentioned that employees prefer the Box 14 for Cafeteria Plans because they can easily see what they contributed for Medical/Dental coverage versus what the employer paid. But again - it still appears to be a gray area...

    Sent from my iPhone
    Sue Bennett
    Bennett/Porter & Associates, Inc.

    ------Original Message------

    Bob Pfahnl - because it is an "optional" box, there aren't standard codes like there are for Box 12.  But you are limited to the number of characters you can use - depending on how large the dollar amount is that you are reporting in that Box.  Most of the time I just use "MD" for the description next to the dollar amount.

    In the last couple of years there has been confusion over reporting Cafeteria Plans in Box 12 or Box 14.  Prior to the requirement to report Medical on the W-2's in Box 12 with the Code DD, we always used Box 14 for Cafeteria Plans.  I think the official rule is that "all medical expenses" should be recorded in Box 12 regardless of whether paid by the employee or employer (and depending on how many W-2's are being reported as well) but we still have employers who choose to report Cafeteria Plans in Box 14 because that's the way it has always been done.  So far, the government has not questioned any of them but I really think it is somewhat of a gray area still.

    Sent from my iPhone
    Sue Bennett
    Bennett/Porter & Associates, Inc.





  • 9.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-29-2019 11:32
    ​​@Sue Bennett  Doh!  Of course, no codes for Box 14, just text.  Do you know what, if anything, eFiling W2 form uses for the description in Box 14?  Or how many can fit?  Or if multiple deductions are combined?  In legacy payroll W2 form, we edited the form and reported SDI in Box 14 and could get a few others in the box.  Aatrix reports SDI in Local boxes.
    Sec 125 plan Cafeteria Plan deduction

    And Help is no help.  I guess we'll see what happens come W2 season.

    Deduction Maintenance Help
      ​

    ------------------------------
    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------

    Original Message


  • 10.  RE: Section 125 pre-tax medical plan code on W2 Box 12 or 14?

    Posted 08-29-2019 17:20

    @ Bob Pfahnl - Box 14 Descriptions are totally up to you.  If you're using Aatrix, you can just change the description on the Aatrix column header, and as I recall, we can put 4 different amount in that Box 14.  (Owners Medical, Auto Allowance, Cafeteria Plans, etc.)

     

    I think SDI is indeed a local tax.  Side note:  We don't have SDI in Oregon, so we actually used the SDI in Tax Table Maintenance in Versions prior to 2018, for our new mandatory Oregon Statewide Transit Tax.  Which means, we'll have to change the column in Aatrix this year for folks who didn't/wouldn't/couldn't upgrade to 2018 yet, because while the State of Oregon didn't make the Oregon Statewide Transit Tax mandatory to be on the W-2's last year, they've made it mandatory to be on them this year.

     

     

    Sue Bennett | President

    P. 503 620 3484 | F. 503 620 2765

    12559 SW 69th Ave | Tigard, OR  97223

    Sue@benpor.com | www.benpor.com

    Bennett/Porter Blog | facebook | twitter

     

     

     



    ------Original Message------

    ​​@Sue Bennett  Doh!  Of course, no codes for Box 14, just text.  Do you know what, if anything, eFiling W2 form uses for the description in Box 14?  Or how many can fit?  Or if multiple deductions are combined?  In legacy payroll W2 form, we edited the form and reported SDI in Box 14 and could get a few others in the box.  Aatrix reports SDI in Local boxes.
    Sec 125 plan Cafeteria Plan deduction

    And Help is no help.  I guess we'll see what happens come W2 season.

    Deduction Maintenance Help
      ​

    ------------------------------
    Bob Pfahnl
    General Manager - Silicon Valley Office
    DSD Business Systems
    CA
    408-641-0922
    ------------------------------


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