What Is Section 125 On W2

Nov 1, 2025 · Cafeteria plans, covered under section 125 of the Internal Revenue Code, allow employees to set aside pre-tax income for certain employer-offered benefits, such as adoption. Nov 27, 2025 · Internal Revenue Code Section 125 governs cafeteria plans, which allow employees to pay for specific benefits using pre-tax dollars. This mechanism alters the calculation of taxable. Apr 11, 2025 · When you see CAFE 125 on your W2, it's showing the amount of money that was deducted from your paycheck BEFORE taxes were calculated. This means you didn't pay income tax. Apr 26, 2024 · The Cafe 125 designation on your W-2 form is important because it indicates that part of your income has been redirected toward pre-tax benefits. The amount you contribute through. Unlock the mysteries of W-2 box 14 codes! Discover what employers can report in this catch-all section of your Form W-2 and learn hidden tax secrets today.

In this post, we’ll break down how Section 125 plan benefits show up on W-2s, what you as an employer need to know, and how modern Section 125-based plans like BrightPath Advantage make this easier. Dec 31, 2024 · The S125 code on the W2 form typically refers to Section 125 of the Internal Revenue Code, which allows for pre-tax benefits, such as contributions to health insurance premiums or.