What is other cafe 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 line 17 on a w2?

Box 17 reports the total amount of state income taxes withheld from your paychecks for the wages reported in Box 16. Box 18 reports wages that are subject to local, city, or other state income taxes.

How does a cafeteria plan affect taxes?

Since 1978, cafeteria plans have allowed workers to divert some of their pre-tax pay toward fringe benefits, thus reducing their tax burden. Cafeteria plans reduce an employee’s taxable income under both the income tax and payroll tax, in contrast to 401(k) plans which are only deductible for income tax purposes.

What is other compensation on w2?

Box 1 “Wages, tips, other compensation”: This is federal, taxable income for payments in the calendar year. The amount is calculated as YTD earnings minus pre- tax retirement and pre-tax benefit deductions plus taxable benefits (i.e., certain educational benefits).

Why is Cafe 125 not included on W2?

Taxes on wages, such as withholding, Medicare and Social Security, are not charged on cafeteria plan items. For this reason, cafeteria plan benefits are not included on the W2 in Box 1, which is reserved for wages. Because they are not taxed, you also won’t find the Café 125 plan included in Box 3 for Social Security, or Box 5 for Medicare.

Where is the cafeteria plan on a W-2?

If you are looking for an indicator on your W-2 that you are utilizing a cafeteria plan, you may have to look in Box 14, which is commonly labelled “Other”. Here, your employer may indicate your enrollment in these unique tax plans.

What are the general instructions for form W-2c?

Specific Instructions for Form W-2c 1 Boxes 1 through 20. For the items you are changing, enter under “Previously reported” the amount reported on the original Form W-2 or the amount reported on a previously filed 2 Box 12—Codes. Complete these boxes to correct any of the coded items shown on Forms W-2. 3 Correcting state information.

What are the boxes on the W-2 form?

See Form 1040 instructions to determine if you’re required to complete Form 8959. Box 6 — Shows the amount of Medicare tax withheld. This amount includes these: Box 7 — Shows any tip income you reported to your employer. Box 8 — Shows tip income allocated to you by your employer. This amount isn’t included in W-2 Boxes 1, 3, 5, or 7.

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