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W-2 Box 12 W

Employee did not contribute to the HSA and box 12 W is showing THE EMPLOYER contribution amount only.
since this did not affect taxes and taxable wages the only correction to generated W-2c is to remove the HSA employer contribution, is this correct?

Comments

  • I have never had to mess around with HSA, but if I was IRS, their would be a required reporting code in Box 12 for the employer contributions. If there really is no such requirement, I would Box 14 it. I would Box 14 anything which should be Box 12 and is not.

  • acl1118acl1118 ✭✭✭

    If there was no employer contribution to the HSA and the amount reported in Box 12W is incorrect a W2c is needed. The amount in 12W has no impact on the employees' personal tax returns, so they don't need to hold up the filing of their personal tax returns. If the employer did contribute but there is no employee contribution, no W2 would be needed.

  • I'm a tad confused, Box 12 code W is for reporting employer contributions (including employee pretax contributions through salary reduction) regardless of whether taxable or not - if taxable, the taxable amount is also included in boxes 1,3, and 5.
    Per the W-2 instructions on page 11 (HSA)
    You must report all employer contributions (including an employee's contributions through a cafeteria plan) to an HSA in box 12 of Form W-2 with code W. Employer contributions to an HSA that are not excludable from the income of the employee also must be reported in boxes 1, 3, and 5. (Use box 14 if railroad retirement taxes apply.)

    Why do you feel you might need to make a correction if that was what was reported?

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