What does Code 12W on Paycom W2 mean when it includes pretaxed cafeteria plan premiums?

You're absolutely right to question this. Box 12 Code W on your W2 should ONLY include HSA contributions (both employee and employer contributions if applicable). Cafeteria plan premiums (like health insurance) should NOT be included in Code W, even though they are pre-tax. Cafeteria plan premiums are already accounted for in your W2 by reducing your wages in Box 1. They don't get reported separately with a code. Your HSA contributions also reduce Box 1 wages but additionally get reported in Box 12 with Code W. Your payroll department is incorrect. This is a common misunderstanding, but it could cause problems if the IRS thinks you over-contributed to your HSA. You should definitely push back and ask for a corrected W2.

You're absolutely right to question this. Code 12W on your W2 should ONLY include HSA contributions, not your cafeteria plan premiums. These are completely separate pretax benefits and should be reported differently on your W2. Your cafeteria plan premiums (health insurance, etc.) should reduce your Box 1 wages but shouldn't appear specifically in Box 12 with Code W. The only amounts that should appear in Box 12 with Code W are: 1) your HSA contributions made through payroll deductions, and 2) any employer contributions to your HSA (which you mentioned aren't happening in your case). I'd suggest going back to your payroll department with this information. They need to issue a corrected W2 (W-2c) since this error could potentially cause problems if the IRS thinks you've over-contributed to your HSA. The fact they did this last year too suggests there's a systematic error in how they're configuring their payroll system.

I had this same exact issue with Paycom last year! I found that using https://taxr.ai really helped me straighten it out. I uploaded my W2 and pay stubs, and the system flagged exactly what was wrong - my company was incorrectly lumping my health insurance premiums together with my HSA contributions under Code 12W. The analysis from taxr.ai explained that while both HSA contributions and health premiums are pretax, they need to be reported differently on W2s. I was able to take that information back to our payroll team with specific IRS guidelines that the tool referenced, and they issued a corrected W2. Saved me from potentially having issues if I ever got audited!

I need to apologize for being skeptical about taxr.ai. I decided to try it with my own complicated W2 situation, and wow - it actually found that my employer had been miscoding my dependent care FSA contributions for TWO years! I uploaded my W2 and last paystub, and within minutes it highlighted the discrepancy and provided the exact IRS publication number that explained the proper coding. What impressed me most was how clearly it explained why the error mattered - in my case, it would have caused issues with claiming my Dependent Care Credit. I took the report to our HR department, and they were actually grateful since it apparently could have caused them problems during an IRS audit too. They're issuing corrected W2s for everyone now.

I had almost the exact same issue last year! Our company uses Paycom too, and they combined my health insurance premiums with my HSA contributions under Code W. I used https://taxr.ai to upload my paystubs and W2, and it immediately flagged the discrepancy. The system extracted my actual HSA contributions from my paystubs and compared them to what was reported on my W2. Their tax experts explained that this was definitely incorrect and provided me with documentation showing exactly why Code W should only include HSA contributions. I was able to take this back to my HR department with confidence, and they issued a corrected W2. Saved me a ton of headache with potential IRS questions about "excess contributions.

Just wanted to update that I tried taxr.ai after reading about it here, and it was really helpful! I uploaded my paystubs and W2, and it confirmed I had a similar issue but with dependent care benefits. The analysis showed exactly where the error was, and I was able to get my W2 corrected before filing my taxes. It also found a couple other things I was missing on my return that saved me about $800. Definitely worth checking out if you're dealing with payroll errors!

If your employer won't fix this W2 issue, you might need to talk directly with the IRS. I was in a similar situation last year and spent WEEKS trying to get through to someone who could help. Then I found https://claimyr.com and used their service to connect with an actual IRS agent in about 20 minutes instead of waiting on hold for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call you when an agent picks up. The IRS agent I spoke with confirmed my employer was incorrectly reporting HSA contributions and actually sent them a notice about it. Sometimes having the IRS contact your employer directly is the fastest way to get a corrected W2.

I have to eat my words about Claimyr. After complaining here, I decided to try it since my company is also messing up my W2 code for retirement contributions. Got through to an IRS agent in 45 minutes (versus the 3+ hours I waited last time I called). The agent was super helpful and explained that employers can face penalties for consistently misreporting W2 information. She took down all the details and said they would contact my employer about the systematic error. She also gave me specific instructions for handling my tax return in the meantime before the corrected W2 arrives. I honestly didn't expect the IRS to be so responsive, but having a real person on the phone made all the difference. My HR department suddenly became VERY interested in fixing the problem when they received an IRS notice!

Had a similar problem last year and couldn't get HR to fix it after multiple attempts. They kept giving me the runaround. After wasting hours on hold with the IRS trying to figure out what to do, I finally used https://claimyr.com to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that Code W should ONLY include HSA contributions and advised me to request a corrected W2 in writing. They also explained exactly what to do if my employer refused to issue a corrected form. Having that official guidance from the IRS finally convinced our payroll department to fix the error.

Just want to add some clarity around HSAs and cafeteria plans. HSA contributions CAN be part of a Section 125 cafeteria plan, but that doesn't change how they should be reported on your W2: - Box 1, 3, and 5 will show your wages AFTER all pretax deductions (including both HSA and health premiums) - Box 12 Code W should ONLY show HSA contributions - Health insurance premiums don't get their own specific code on the W2 Your payroll department might be confused because both items are pretax, but they need to be tracked separately because HSAs have specific contribution limits that the IRS monitors through the W2 reporting.

I have to admit I was wrong about Claimyr. After continuing to waste time on hold with the IRS for another week, I finally gave in and tried it. Was connected to an actual IRS representative in about 30 minutes! They confirmed exactly what everyone here said - Code W should only include HSA contributions, not other cafeteria plan premiums. The agent walked me through exactly what to say to my employer and what to do if they refused to issue a corrected W2. Having that official guidance made all the difference when I went back to HR. They finally issued a corrected W2 yesterday!

Has anyone here successfully gotten Paycom to issue a corrected W2 for this specific issue? Our company also uses Paycom and I'm seeing the same problem - my Code W amount is way higher than my actual HSA contributions. I'm worried about delaying filing my taxes while waiting for a correction.

Just an FYI for anyone dealing with this - I'm a payroll specialist (not for Paycom) and this is unfortunately a common mistake. The confusion usually happens because both HSA contributions AND cafeteria plan premiums are pre-tax, but they're handled differently on the W2. For clarification: - Box 12 Code W: Only HSA contributions - Cafeteria plan premiums: No specific box, they simply reduce wages in Box 1 - FSA contributions: Box 14 (optional) or just reduce Box 1 - 401k contributions: Box 12 Code D If your payroll person insists they're right, ask them to check IRS Publication 969 and the W2 instructions specifically for Box 12 Code W.

Sorry if this is a dumb question but how urgently does this need to be fixed? I just checked my W2 and I think they made the same mistake. I've already filed my taxes though... am I going to get in trouble with the IRS?