What does other cafe mean on w2?
Cafe 125 on a W-2 tax form refers to a cafeteria plan, in which an employer offers workers a choice between various job benefits. These benefits can include medical insurance, life insurance, adoption assistance, assistance with care for dependent elderly relatives, extra paid vacation days and similar.
What does less other cafe mean on w2?
It is also known as a “cafeteria plan”. Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.
What is Cafe on my paycheck?
What is a Section 125 Cafeteria Plan? A Section 125 Cafeteria Plan is an employer-sponsored benefits plan that lets employees pay for certain qualified medical expenses – such as health insurance premiums – on a pre-tax basis. Contributions to the cafeteria plan are made before taxes are taken out of their paychecks.
What does CAFE mean in Box 14 of w2?
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 is code DD in Box 12 of w2?
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD.
What qualifies for cafeteria plan?
Employers are generally eligible to establish a simple cafeteria plan if they employ an average of 100 or fewer employees during either of the two preceding years.
What benefits can be included in a cafeteria plan?
Qualified benefits include the following:
- Accident and health benefits (but not Archer medical savings accounts or long-term care insurance)
- Adoption assistance.
- Dependent care assistance.
- Group-term life insurance coverage.
- Health savings accounts, including distributions to pay long-term care services.
Where does cafeteria plan go 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.
What is Cafe 125 on your W-2?
Under a cafeteria, or Section 125, plan, you pay for your employer-sponsored benefits with pretax money. Your employer deducts your payments from your wages before withholding certain taxes. It may, however, choose to report certain benefits on your W-2 and code them as Café 125.
What does e mean on W-2?
Elective deferrals
E — Elective deferrals under a Section 403(b) salary reduction agreement. G — Elective deferrals and employer contributions (including non-elective deferrals) to a Section 457(b) deferred compensation plan.
Do you have to report tips on W-2?
The amount of tips you reported to your employer was less than your share of 8% (or a lower rate approved by the IRS, if your employer requested it) of food and drink sales. Generally, you must report the full amount contained in box 8 of your Form W-2.
Should I include Cafe 125 on my W-2?
Without knowing exactly what the employee benefits are and what the taxpayer’s situation is, the “Cafe 125” on the W-2 might need to be treated in several different ways on the tax return, or it might simply be there for information (if in box 14) and should be ignored for tax return purposes.
How do I report Cafe 125 on my tax return?
Having Cafe 125 reported on your W-2 does not change the way you prepare and file your tax return. The money deferred to pretax plans should already be subtracted from the total amount of your wages reported in box 1 on your W-2. You should verify that this information is reported correctly before filing your tax return.
How do I report deferred pay on Form W-2?
The money deferred to pretax plans should already be subtracted from the total amount of your wages reported in box 1 on your W-2. You should verify that this information is reported correctly before filing your tax return. If you find a discrepancy on Form W-2, you should contact your employer immediately to have it corrected.