W-2 Box 14 Codes Explained — A Complete Guide for Employees

W-2 Box 14 is the catch-all "other" field where your employer discloses information that doesn't fit anywhere else on the form. Unlike Box 12 (which uses IRS-standardized letter codes like DD, W, and D), Box 14 has no legally enforced format — employers use whatever labels their payroll software defaults to.

That makes Box 14 confusing. Here's a complete plain-English guide to the codes you'll most often see, what they mean, and which ones — particularly Section 125 / CAF 125 — might mean you're owed money.

The most common W-2 Box 14 codes

Section 125 / CAF 125 / 125 PLAN / CAFETERIA PLAN

Your annual pre-tax deductions under your employer's cafeteria plan (Internal Revenue Code § 125). Typical inclusions: pre-tax health insurance premiums, FSA contributions, dependent care, and — in the most valuable variant — a Preventive Care wellness program that creates an additional ~$72/paycheck raise.

This is the line that may matter most to your paycheck. If your employer is running a partial Section 125 plan (most do — usually just pre-tax health insurance), there's a complete variant that delivers a structural raise on top of what you already have. We'll cover this in detail below.

RSU / RSUs (Restricted Stock Units)

The dollar value of restricted stock that vested and was included in your taxable wages this year. The amount in Box 14 typically matches what was added to Box 1 (wages) when the stock vested. Important for your cost basis when you eventually sell — keep this for your records.

ESPP (Employee Stock Purchase Plan)

Discount or qualified disposition info from your employee stock purchase plan. The amount usually represents the discount portion of stock you bought through the ESPP that's reportable as ordinary income. Your CPA needs this when you sell ESPP shares.

K (Pre-tax 401(k) match — non-IRS-standardized variant)

Some employers use "K" in Box 14 to denote pre-tax 401(k) deductions if they don't fit them in Box 12 (Box 12 code D is the IRS-standard for pre-tax 401(k)). Don't confuse with Box 12 code K, which is a different IRS-defined item (excise tax on golden parachutes).

V (Income from non-statutory stock options)

The income reported when you exercised non-qualified stock options (NQSOs). Same number is usually reflected in Box 1. Keep for cost-basis tracking.

DD (Employer health coverage cost — Box 12, not Box 14)

Sometimes mislabeled into Box 14 by smaller payroll systems. The IRS standard is Box 12 code DD — total cost of employer-sponsored health coverage. Informational only; doesn't change your taxes.

NTA / Non-Taxable Allowances

Various non-taxable allowances — clergy housing, certain federal allowances, and some military combat pay can land here. Each has its own tax treatment; consult your CPA if you see one.

AUTO / VEHICLE / PER DIEM

Personal use of company vehicle, mileage reimbursements above the IRS standard rate, or per-diem amounts that exceeded federal thresholds. Imputed income — already included in Box 1 if taxable.

HSA / HSA CONTRIB / HSA POST-TAX

Health Savings Account contributions. Pre-tax HSA contributions go in Box 12 code W; post-tax HSA contributions sometimes show up in Box 14 as "HSA POST-TAX" — those qualify for a deduction on your personal tax return (Form 8889).

UNION DUES / DUES

Union membership dues paid via payroll deduction. Currently not deductible for federal taxes (the Tax Cuts and Jobs Act suspended miscellaneous itemized deductions through at least 2025), but some states still allow it.

NTI / TAXABLE TIPS

Tips reported through the employer that exceeded the FICA-tip-credit threshold. Already included in Box 1.

PUCC / GTL / IMP

Personal Use of Company Car (PUCC), Group Term Life Insurance over $50,000 (GTL), or generic imputed income (IMP). Already included in your Box 1 wages and FICA wages.

CASDI / SDI / SUI

Mandatory state disability or unemployment insurance contributions (e.g., CASDI for California State Disability Insurance). Some states allow these as itemized deductions on your state tax return.

OASDI

Old-Age, Survivors, and Disability Insurance. Same as the Social Security tax in Box 4 — usually just disclosed informationally.

EIC / EIC ADV

Advance Earned Income Credit payments. The federal advance EIC was discontinued for tax years 2011 and later, so you'll rarely see this on a current W-2.

After-tax / POST TAX

Various after-tax payroll deductions — supplemental life insurance, accident coverage, optional add-ons. Already in your taxable wages.

State-specific items

Some states have unique Box 14 conventions: NJ FLI (New Jersey Family Leave Insurance), PA LST (Pennsylvania Local Services Tax), NY DBL (New York Disability Benefits Law). These follow your state's tax rules.

Why "Section 125" / "CAF 125" deserves special attention

Most Box 14 codes are informational — they describe transactions that already affected your taxable wages. Section 125 is different: it represents an ongoing structural mechanism in your paycheck that may be delivering less than it could.

If your employer is running a basic Section 125 plan, the dollars in your Box 14 likely represent pre-tax health insurance premiums only. That's a real benefit (you're saving federal income tax + 7.65% FICA on those dollars), but it's a fraction of what's available.

A complete Section 125 Preventive Care plan does the same pre-tax health-insurance work and adds a HIPAA-compliant participatory wellness layer. The mechanics:

• Pre-tax salary reduction of $1,200/month → lowers your taxable wages
• Post-tax wellness reward of ~$1,000/month → goes back into your paycheck
• Net effect: ~$71.96 more per paycheck automatically (~$863/year)
• Plus: 24/7 telemedicine, 400+ free generic medications, dental savings up to 60%, mental health counseling for the household

At zero out-of-pocket cost to you, and zero net cost to your employer — they save $681.60/employee/year in FICA after the program's admin fee.

Read the deep-dive: What Is Section 125 on Your W-2? →

How to know if your employer is running the complete plan

Three quick checks:

1. Box 14 dollar amount. A complete Preventive Care plan typically generates ~$14,400/year in the Section 125 / CAF 125 line (12 × $1,200 monthly pre-tax reduction). If your figure is meaningfully less, your employer probably isn't running the Preventive Care variant.
2. Your paycheck includes a "wellness reward" line. The complete plan returns a ~$1,000/month post-tax payment labeled something like "Wellness Reward," "Preventive Care Reward," or "Indemnity Benefit." If you don't see this, you're on a partial plan.
3. Ask HR. "Are we on a Section 125 Preventive Care wellness plan, or just pre-tax health insurance?" is a single yes/no question your HR director can answer in 30 seconds.

What to do if you're not on the complete plan

Use the Paycheck Decoder above to calculate your specific raise. Then download the HR Request Template PDF and hand it to your owner or HR director. The PDF has:

• The math (FICA savings + wellness reward structure)
• The compliance citations (HitesmanLaw May 2025 opinion + CBIZ August 2025 review)
• The free 15-minute analysis link your employer can book to get their exact employer-side savings number

This is exactly how the employees at our case-study companies — Black Tiger Transportation, Affinity Hospice, Golden Living, Avant-garde, and others — got their raises.

The compliance record

If you're going to ask your employer about this, expect them to ask "is this legal?" Here's what to tell them:

• HitesmanLaw P.A. (May 5, 2025): 8-page formal legal opinion from a Super Lawyer-rated ERISA attorney, AV-rated since 1998, co-author of the national ERISA compliance manual. Concludes the program satisfies applicable IRS requirements.
• CBIZ Advisors LLC (August 22, 2025): Independent review by a top-7 U.S. accounting firm (135,000+ clients). Confirms compliance with IRC §§ 125, 105, 106, ERISA, ACA, and COBRA.
• $500,000 legal protection per enrolled employer, plus $10,000 per employee participant. Insurance-backed audit-defense coverage.
• Direct from the IRS: Section 125 has been federal law since 1978. IRS.gov — Cafeteria Plans is the primary source.

See the full compliance authority page →

FAQ