Your Benefits and W-2 Statement
Benefits and Taxes
Several employee benefits programs that Stanford Medicine Children’s Health offers to eligible team members are non-taxable, meaning the hospital can help you pay for benefits without it being considered income; other programs are tax-advantaged, meaning that you can pay for benefits with part of your paycheck before taxes are calculated. In both cases, you have the capacity to save money throughout the year.
The Form W-2 reports what you earned and what taxes you paid during the tax year. Some benefits are reported on the forms even if they are non-taxable, and this may cause confusion. It’s important to note that just because benefits are reported doesn’t mean you’ve paid taxes or will have to pay taxes on them. If you aren’t sure about your tax liability, consult with a tax professional or the IRS directly.
What this means for you
Below are details of the Form W-2 to highlight where you might see benefits-related sums reported. Also included below is an alphabetical listing of benefits and directions to find them on your form.
Your W-2 forms are mailed to you by January 31 each year and are available for a period of three (3) years on AccessHR. You may elect to be notified when your W-2 is available online by including your email address.
You should always double-check your Social Security Number. If there is an error, AccessHR provides directions for how to correct it.
This reflects what you earned this year, which includes taxable benefits. This does not include:
Wages earned from another employer last year
Before-tax deductions for medical, dental or vision insurance, parking benefits or before-tax retirement contributions
Wage replacement you were paid directly from The Hartford while on a family or disability leave; you will receive additional forms from The Hartford to submit with your tax filing that reflect additional wages you were paid on leave
This amount is determined based on your withholdings on your Form W-4. If it has been a while since you looked at that form, or you have a tax liability at the end of the year (underwithholding), you may want to log into AccessHR and review it and make changes.
Employers report dependent care benefits, which include your before-tax contributions to your Dependent Care Flexible Spending Account (DCFSA), as well as usage of Lucile Packard Children’s Hospital child and adult Back-Up Care program available through Bright Horizons. You do not pay taxes on the first $5,000 of dependent care benefits; anything over $5,000 will be added to your Boxes 1, 3, and 5 (e.g. team members who participate in a dependent care reimbursement account who also participate in the Back-Up Care program in a given tax year). You may need to complete Form 2441, Child and Dependent Care Expenses, to compute any taxable and nontaxable amounts.
For further guidance on this topic, and to review any questions you may have, please contact a tax professional or the IRS directly (www.irs.gov).
This is a collection of status codes and amounts to determine if an item is taxable income.
The IRS website offers a complete list of codes. Here are some common codes that may relate to Stanford Children’s benefits:
DD — Cost of employer-sponsored health coverage; this is included for your information and is not taxable to you
W — Employer and employee contributions to your health savings account (HSA), which is not federally taxed but is taxable in California
E — Elective deferrals under a Section 403(b) salary reduction agreement
- G – Elective deferrals and employer contributions (including non-elective deferrals) to a Section 457(b) deferred compensation plan.
T — Adoption benefits (not included in Box 1)
CASDI refers to California state disability leave insurance, and the amount to which you paid into the insurance program this year. If you are unable to work due to a non-work related illness or injury, such as maternity leave, this income protection plan pays a benefit.
Alphabetical listing of benefits:
Adoption Assistance – Box 12, code T
Dependent Care FSA (DCFSA) – Box 10
Disability Pay – This will be sent to you separately from The Hartford
Back-up Child, Adult and Elder Care and back-up care – Box 10
Health insurance (employer contributions) – Box 12, code DD
Health Savings Account (HSA) – Employer and employee contributions – Box 12, code W
Retirement Savings Plan – Employee contributions – Box 12, code E
Educational Assistance Program – Tuition reimbursement payments above the tax limit of $5,250 per tax year, may be tax-exempt based on a participant’s response(s) to tax question(s) during the application process.
- Tuition reimbursement payments above the tax limit of $5,250 per tax year may be tax-exempt based on a participant’s response(s) to tax question(s) during the application process. Taxable amounts would be considered taxable income and reflected in Box 1 and Box 16.
- Student loan repayment funds are federally non-taxable if less than $5,250 per tax year; amounts over the limit would be considered taxable income and reflected in Box 1 and Box 16. California residents will be subject to state taxes regardless of $5,250 threshold.