Is local tax affected by the cafeteria 125 employer plans. My company has been treating local same as Federal.

[gruuh1228]

An accountant told me , local wages are based on the gross, and not on pretax plans. Says I could owe at end of year.

[TomYoung]

I suppose it's possible that a state or local taxing authority could treat a cafeteria 125 employer plan differently than the federal government.  As a practical matter I'd guess that most state and local taxing authorities "conform" to federal law, though I wouldn't be surprised if there were exceptions to that generality.  Since you haven't named the local taxing authority and as this board focuses on federal, (and some state), taxes, I'd think the best thing to do is talk it over with the employer.  Ask that question directly.

[Opus 17]

All or almost all states start with the federal taxable income, then they may have state specific additions and subtractions.  

You would have to check the tax code for your state or locality.

If you use turbotax, it should know about it if your locality adds back some federally non taxed wages.