City employees and 457b contributions

[JenMO]

The city has a 457b for their employees and contributes 5% of salary regardless of employee contribution. Some employees contribute, my question is what amount is put into the 12a box of the W-2. I believe only the employees part should be there, but last year IRS said employee part, this year they say whole amount( city plus employee $$). An employee's contribution to the 457b reduces income tax, but employee pays FICA on that amount? Is this correct? We've had a hard time getting consistent information.

[BP.]

The city has a 457b for their employees and contributes 5% of salary regardless of employee contribution. Some employees contribute, my question is what amount is put into the 12a box of the W-2. I believe only the employees part should be there, but last year IRS said employee part, this year they say whole amount( city plus employee $$). An employee's contribution to the 457b reduces income tax, but employee pays FICA on that amount? Is this correct? We've had a hard time getting consistent information.

Maybe this will help. This is from Form W-2 instructions, p. 12, for Box 12:

"Only elective deferrals . . . should be reported in box 12 for all coded plans; except, when using code G for section 457(b) plans, include both elective and nonelective deferrals."

And further, same page:

"Code G- Elective deferrals and employer contributions (including nonelective deferrals) to any governmental . . . section 457(b) deferred compenation plan."

Sorry, don't know about your FICA question; haven't had to prep W-2's in quite some time.