What does BOX 12 code F represent?

What does BOX 12 code F represent?

• A. Cost of employer-sponsored health coverage
• B. Section 408(k)(6) elective deferrals
• C. Income under section 409A non-qualified deferred compensation
• D. None of the above

Answer: (B)

BOX 12 code F refers specifically to Section 408(k)(6) elective deferrals, which pertain to contributions made to a simplified employee pension (SEP) plan established by an employer for an employee. This code on Form W-2 indicates that the employee has elected to defer a portion of their salary to this retirement plan under the specified regulations. This designation helps both employees and employers keep track of the amounts that are being contributed toward retirement savings in a tax-advantaged manner. It is vital for payroll professionals to accurately report this information as it impacts an employee's taxable income, as well as their retirement plan contributions. The other options listed do not align with the specific definition of BOX 12 code F.

BOX 12 code F refers specifically to Section 408(k)(6) elective deferrals, which pertain to contributions made to a simplified employee pension (SEP) plan established by an employer for an employee. This code on Form W-2 indicates that the employee has elected to defer a portion of their salary to this retirement plan under the specified regulations.

This designation helps both employees and employers keep track of the amounts that are being contributed toward retirement savings in a tax-advantaged manner. It is vital for payroll professionals to accurately report this information as it impacts an employee's taxable income, as well as their retirement plan contributions. The other options listed do not align with the specific definition of BOX 12 code F.