Reported anywhere on the w-2 (payment for medical expenses)
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Nope..
only dependent care has a reporting requirement. Medical does not. -
Outwest
You're saying that a cafeteria plan doesn't show up on the W2 at all; is that right? What is the rationale for that? Is it simply that none of it is taxed at the time?
I haven't done any with cafeterias in a long time and I was thinking that a former client used to bring in one where the cafeteria amount was included in social security wages (box 3) but not in the the box one wages, tips, etc. (like a 401K W2 would be done). But the cafeteria part is not subject to Social Security (or anything else), is it?Comment
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To expand..
The basic premise of the cafeteria plan is that qualifying benefits are fully excluded from income. The only effect is to reduce the various taxable wages on the W2.
Now I noted that dependent care benefits are required to be shown. This is because even with the cafeteria plan, you must file a Form 2441 to calculate any potential taxable benefits (if the benefits were not fully used) or potential additional credit.
The situation you described with different SS and Box 1 wages normally shows up on the retirement plans (as you noted) or a payroll processing error. Stuff happens.
Caution, not all states follow the federal cafeteria plan exemptions. So the wage amounts may be different for the state. Most often seen with SUTA wages as I recall.
DougComment
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Box 14 type Section 125 and the amountJGComment
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