Is W-2 Box 12 Code D taxable?

The amount reported with Code DD is not taxable. This amount does not apply to contributions under a tax-exempt organization section 457(b) plan. Permitted benefits under a qualified small employer health reimbursement arrangement.

What is Box 12 Code DD on W-2?

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 does Box 12 dd include?

Box 12DD: This is the total cost of the employer sponsored health coverage you received during the year in box 12 under code DD. This figure includes both the employee and employer paid shares of health insurance premiums and is for informational purposes only. This amount is not taxable.

What is Box 12b D on W-2?

Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan.

What does box 12a and 12b mean on W-2?

Box 12 codes A: Uncollected social security or RRTA tax on tips reported to your employer. AA: Designated Roth contributions under a section 401(k) plan. B: Uncollected Medicare tax on tips reported to your employer (but not Additional Medicare Tax) BB: Designated Roth contributions under a section 403(b) plan.

Are health insurance premiums paid by employer taxable income?

Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is typically excluded from taxable income.

Do all employers have to report health insurance on W-2?

W-2. All employers that provide “applicable employer-sponsored coverage” must report the value of the healthcare coverage in box 12 of the annual W-2 form. Generally, Employers with 49 and less full-time employees will only report the coverage value on the employee’s W-2. See question #9.

What are the instructions for Box 12 on W-2?

The W-2 box 12 codes are:

  1. A – Uncollected Social Security tax or Railroad Retirement Tax Act (RRTA) tax on tips.
  2. B – Uncollected Medicare tax on tips.
  3. C – Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5); Taxable costs are information only.