Concept: Cost of Employer-Sponsored Health Coverage: Box 12DD (USA)
If you have an employer match or flexible benefits that apply to a Flexible Spending
Account (FSA), add these pay component groups to your earnings and deductions:
- Section 125 Cafeteria Plan (for earnings or deductions).
- FSA Employer Match (for earnings or deductions).
- FSA Employee Deduction.
Workday then determines whether to include the employer's FSA match in the Box 12DD
amount.
Example
In these year-end W-2 results, Workday determines to include an employer's FSA match in
the Box 12DD amount:
- Worker A's Total FSA (2,400 USD) is less than the 125 Cafeteria Plan (3,540 USD). Therefore, Workday doesn't include the employer's FSA match in the Box 12DD box.
- Worker B's Total FSA (2,400 USD) is more than the 125 Cafeteria Plan (1,980 USD). Therefore, Workday includes the employer FSA match in the Box 12DD (Medical EE [600 USD] + ER Match to FSA [1,200 USD] = 1,800 USD).
Pay Component | 12DD | FSA ER | Sec 125 | FSA EE | Worker A | Worker B |
|---|---|---|---|---|---|---|
Medical EE | X | X | 1800 | 600 | ||
FSA - EE | X | X | 1200 | 1200 | ||
Dental - EE | X | 300 | 60 | |||
Vision - EE | X | 240 | 120 | |||
Medical ER | X | 1800 | 0 | |||
ER Match to FSA | X | X | 1200 | 1200 | ||
FSA | 2400 | 2400 | ||||
125 | 3540 | 1980 | ||||
Report ER FSA? | No | Yes | ||||
Expected W-2 12DD | 3600 | 1800 |