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A Code S125 refers to a Section 125 plan which describes payroll deductions for an employee benefit. If it is an employee benefit that has already been removed from Wages in Box 1, then, choose a category of Other. **Say "Thanks" by clicking the thumb icon in a post.
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. If you’re enrolled in your employer’s Section 125 benefit plan, your premiums are deducted from your wages on a pretax basis, which gives you a tax break.
Section 125 cafeteria plan. A cafeteria plan is a cost-effective way for businesses to sponsor benefits packages. It offers tax advantages for employers and employees alike and is a key component of many talent acquisition strategies.
A Section 125 plan is part of the IRS code that enables and allows employees to take taxable benefits, such as a cash salary, and convert them into nontaxable...
A 401 (k) plan is a retirement benefit that allows both employer contributions and employee pre-tax salary deferrals. A section 125 benefit plan is an employer-sponsored plan that allows employees to pay the cost of eligible expenses, such as health care or dependent care, on a pre-tax basis.
Box 12 — Various Form W-2 codes on box 12 reflect different types of compensation or benefits. This is one of the more complex W-2 boxes, with codes ranging from A to HH. Gain more insight into W-2 box 12 codes.
The description on W2 says S125. What do I put as a description from the drop down list? Box 14 is informational - S125 means it's the amount of premiums you paid tax-free for you company's Section 125 (aka cafeteria) benefits plan.