Cafe 125 on W2

[GeorgeRoy]

All year my paycheck did not have any deductions except for normal taxes and insurance. My last paycheck stated I made 40013.69 when my w2 showed up there was a cafe 125 deduction that I never authorized! My employer says it’s my responsibility they didn’t put it there? Where did it come from? And where did the money go?

[MaryK4]

A 125 cafeteria plan is one that your employer offers- it can include health insurance premium payments, child care expenses and other benefits.  They are pre-tax benefits reported on your W2.  You would have had to sign up for the benefits.  See 1 Section 125 – Cafeteria Plans.

[GeorgeRoy]

I’m familiar with what cafe 125 is. My problem is that I did not sign up for this deduction and there were no deductions from my payroll all year this appeared on my w2 when I received it. My employer acts like they nothing about this? 

[AnnetteB6]

If there were no deductions made from your paychecks with regard to a cafeteria 125 plan, then the W-2 is most likely incorrect.  If money was actually taken from your paychecks and never used, it is likely lost to you.  Cafeteria plans generally have specific timeframes that the money can be used without it being forfeited.  

The good news is that it is not reported on your tax return at all, so you do not need a corrected W-2 to file your return.  However, you should keep pursuing this with your employer to learn whether it is a mistake and to make sure it is not being repeated for 2025.

@GeorgeRoy