W-2 Forms

W2 12 Codes

Form W2 is filed by employers to report wages, salaries, and other compensation paid to employees. On Form W2, the Box 12 Codes are certainly something that falls a little bit outside of this. Since the type of income paid to employees must be reported along with the amount, W2 12 Codes help employees identify the different types of payments.

Form W2 Box 12 is oftentimes left blank. The reason for this is there aren’t many different types of income paid to employees other than their regular salary. If any of the following income types have been paid to employees, it must be reported on Form W2 Box 12.

Form W2 Box 12 codes are

To identify different kinds of payments, employers are required to enter the appropriate Box 12 code. If your Form W2 reports income on Box 12 with a specific code, here is what the 12 codes mean.

2021 Form W2 Box 12 Codes

Box 12 Codes are as single or double letters. Each report a different kind of payments.

Double Letter Codes

AA – Designated Roth contribution under 401(k) plan.

BB – Designated Roth contributions under a 403(b) plan.

CC – Only for employer use.

DD – Cost of employer-sponsored health coverage.

EE – Designated Roth contributions under 457(b) plan.

FF- Permitted benefits under a qualified health reimbursed arrangement for small business employers.

GG – Income from qualified equity grants under Section 83i.

HH – Aggregate deferrals under section 83i elections as o f the close of the calendar year.

Single Letter 12 Codes

A – Uncollected RRTA or Social Security tax on tips.

B – Uncollected Medicare tax on tips.

C – Taxable cost of group-term life insurance over $50,000.

D – Elective deferral under a 401(k) arrangement or cash plan.

E – Elective deferrals under a Section 403(b) salary reduction agreement.

F – Elective deferrals under a Section 408(k) salary reduction SEP.

H – Elective deferrals to a Section 501(c) tax-exempt organization plan.

J – Nontaxable sick pay.

K – 20% excise tax on excess golden parachute payments.

L – Substantiated employee business expense reimbursements.

M – Uncollected RRTA or Social Security tax on taxable costs of group-term life insurance over $50,000

N – Uncollected Medicare tax on taxable costs of group-term life insurance over $50,000.

P – Excludable moving expense reimbursements paid to a member of the U.S. Armed Forces.

Q – Nontaxable combat pay.

R – Employer contributions to Archer Medical Savings Account.

S – Employee salary reduction contributions under Section 408(p).

T – Adoption benefits.

V – Income from exercise of non-statutory stock options.

W – Employer contributions to HSA including the amounts the employee elected to contribute using Section 125 cafeteria plan.

Y – Deferrals under a section 409A nonqualified deferred compensation plan.

Z – Income under a nonqualified deferred compensation plan that fails to satisfy Section 409A. (subject to additional 20% tax + interest.

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