Tax season can be confusing, and nothing raises more eyebrows than the cryptic entries sitting quietly in Box 14 of your W-2 form. From “NY PFL” to “414H” to “S125,” these codes can feel like a foreign language. This guide breaks down everything you need to know about Box 14 on your W-2, the most common codes, what they mean for your taxes, and how to handle them correctly.
What Is Box 14 on a W-2?
Box 14 is the “Other” information box on your IRS Form W-2. Employers use it to report various types of additional compensation, deductions, or tax-related information that doesn’t have a dedicated box elsewhere on the form.
Think of Box 14 as a catch-all section. While Boxes 1–13 have specific, standardized uses mandated by the IRS, Box 14 gives employers flexibility to communicate important financial details that may or may not affect your federal, state, or local tax return.
The IRS does not standardize the labels used in Box 14. This means two employers can report the same deduction using completely different codes, which is why so many people find this box confusing.
Why Box 14 Matters: The Big Picture
Before diving into specific codes, here’s why you shouldn’t ignore Box 14:
- Some entries directly affect your state tax deductions (e.g., NY PFL, FAMLI, UI/HC/WD)
- Others confirm pre-tax benefits that reduce your taxable income
- A few codes represent employer-reported supplemental information only (no action needed)
- Certain entries relate to retirement contributions or government employee benefits (e.g., FERS, 414H)
- Some entries are specific to employer benefit programs, like Abbott’s premium reimbursement
Common W-2 Box 14 Codes: A Reference Table
| Code | Full Name | What It Represents | Action Required? |
| S125 | Section 125 | Pre-tax cafeteria plan deductions (health, dental, FSA) | No, already excluded from Box 1 |
| 414H | Section 414(h) | Government employee retirement contributions | Yes, may be deductible on state return |
| NY PFL | New York Paid Family Leave | Employee contributions to NY Paid Family Leave | Yes, deductible on NY state return |
| FAMLI | Family & Medical Leave Insurance | State-mandated paid leave contributions (CO, CT) | Yes, deductible on state return |
| UI/HC/WD | Unemployment/Health Care/Workforce Dev | NJ-specific payroll deductions | Yes, deductible on NJ state return |
| FERS | Federal Employees Retirement System | Retirement contributions for federal employees | State-specific |
| LST | Local Services Tax | Local earned income/services tax (common in PA) | Informational; may affect local filings |
| DISQ ESPP | Disqualifying Disposition – ESPP | Income from the disqualifying sale of ESPP shares | Already in Box 1, do not double-count |
| VRSRET | VRS Retirement | Virginia Retirement System contributions | May be deductible on VA state return |
| CAF | Cafeteria Plan | Pre-tax benefit plan deductions | Generally informational |
| OVT / EX OT | Overtime Wages | Overtime pay for informational purposes | Informational only |
| K | Code K | Excise tax on golden parachute payments | Informational |
| FLSA | Fair Labor Standards Act | FLSA-designated overtime/wage supplements | Informational |
Detailed Breakdown of the Most Searched Box 14 Codes
S125 Section 125 Cafeteria Plan
What it is: Section 125 refers to the IRS code that allows employees to pay for certain benefits (health insurance, dental, vision, FSA contributions) on a pre-tax basis through a cafeteria plan.
What to do: Nothing special. These amounts have already been excluded from your Box 1 taxable wages. You do NOT deduct them again on your federal return. However, some states (like New Jersey and Pennsylvania) do not recognize Section 125 pre-tax treatment, so your Section 125 amount may need to be added back to your state income.
414H: Government Retirement Contributions
If you’re a state or local government employee, such as a teacher, firefighter, or city worker, your mandatory retirement contributions may be reported as 414H in Box 14.
Three important things to know:
- These contributions are exempt from federal income tax (already excluded from Box 1)
- They are NOT exempt from Social Security or Medicare taxes
- For New York State filers, the 414H amount must be added back to your NY adjusted gross income before computing your NY deduction
NY PFL: New York Paid Family Leave
New York State requires employees to contribute to the state’s Paid Family Leave program. Your W-2 will show the amount you paid as NY PFL in Box 14.
How to handle it on your taxes:
- The NY PFL contribution is a post-tax deduction it is not excluded from your Box 1 federal wages
- On your New York state return, you can claim it as a miscellaneous itemized deduction
- It is not deductible on your federal return
FAMLI: Family and Medical Leave Insurance
FAMLI appears in Box 14 for employees in states that have implemented paid family and medical leave programs, most notably Colorado and Connecticut.
- Colorado’s FAMLI program began payroll deductions in 2023
- Employee contributions are reported here
- These amounts may be deductible on your state return, depending on your state’s rules
- They are generally not deductible federally
UI/HC/WD — New Jersey Payroll Deductions
New Jersey employers report three separate deductions that are often combined in Box 14:
| Code | Stands For | Purpose |
| UI | Unemployment Insurance | NJ state unemployment fund contribution |
| HC | Health Care | NJ Family Health Benefits Plan |
| WD | Workforce Development | NJ Workforce Development Partnership Fund |
These amounts are deductible on your New Jersey state tax return. Make sure to enter the combined total where the NJ return asks for “UI/WF/SWF/HC/WD contributions.”
FERS: Federal Employees Retirement System
Federal government employees will often see FERS in Box 14. This represents their mandatory contribution to the Federal Employees Retirement System pension.
- FERS contributions are excluded from federal taxable income (not in Box 1)
- Most states also exempt FERS contributions, but not all
- Check your specific state’s rules. Some states treat this as taxable income
LST: Local Services Tax
LST (Local Services Tax) is most commonly seen on W-2s from Pennsylvania employers. It represents a local tax on the privilege of working within a municipality.
- Typically, a flat annual fee (often $52/year, or $1/week)
- Informational only for your tax return, in most cases
- May be entered on your local earned income tax return as a credit
DISQ ESPP: Disqualifying Disposition of Employee Stock Purchase Plan
This is one of the most misunderstood Box 14 entries. When you sell ESPP (Employee Stock Purchase Plan) shares in a disqualifying disposition (sold too early), the discount/gain is treated as ordinary income.
VRSRET: Virginia Retirement System
Virginia state and local government employees will see VRSRET in Box 14, representing their Virginia Retirement System contributions.
- Already excluded from Box 1 federal wages
- May be partially deductible on your Virginia state return, depending on your hire date and VRS plan
- Employees hired after January 1, 2014, under the Hybrid Retirement Plan have different treatment than those under Plan 1 or Plan 2
Employer-Specific Codes: Abbott W-2 Box 14
Some large employers use custom, internal codes in Box 14 that aren’t universal. Abbott Laboratories, for example, may include entries such as:
- Abbott Premium Employer-subsidized health insurance premium contribution (informational)
- OBBBTT / OB3QOT These appear to be internal payroll system codes; if you see these, contact your HR or payroll department for clarification, as they do not correspond to standard IRS codes
CAF and OVT: Do You Add Them Together?
A common question: “Should I add my CAF and OVT amounts together in Box 14?”
No, do not combine them.
- CAF (Cafeteria Plan) represents pre-tax benefit deductions
- OVT or EX OT (Overtime Wages) is a separate informational figure
They serve completely different purposes. Enter each one separately as labeled on your W-2. Neither amount typically needs to be entered on your federal return, but your tax software may ask you to categorize them when you type in the description from Box 14.
QOT Wages / EX OT Wages: What Are These?
Some employers break out specific wage categories in Box 14 for state wage reporting purposes:
- QOT Wages Qualified Overtime wages (used in some states that exempt overtime from state income tax)
- EX OT Wages Exempt Overtime wages, same concept, different employer labeling
- OVT General overtime pay, often reported for informational or state-tax purposes
These typically do not change your federal tax liability. However, in states that have passed overtime pay exemptions, these figures could reduce your state taxable income. Check your state’s current tax law.
Code K, U, V, W, X, Y, Z in Box 14
While Boxes 12a–12d on the W-2 use letter codes for specific IRS-defined items, Box 14 sometimes borrows similar-looking single-letter codes. Here’s what some mean in the Box 14 context:
- Code K — Excise tax on excess golden parachute payments (informational; no action on most returns)
- Code U/V/W/X/Y/Z — These are not standardized for Box 14 the way they are for Box 12. If your W-2 shows one of these in Box 14 (not Box 12), it’s likely an employer-specific code. Contact your payroll department or HR for clarification.
FLSA in Box 14 Fair Labor Standards Act
FLSA in Box 14 is sometimes used by employers to separately identify wages that are subject to Fair Labor Standards Act overtime requirements. This is typically for informational and compliance purposes and does not change how you file your tax return.
You may see this on W-2s from:
- Healthcare organizations
- Government contractors
- Retail and hospitality employers
How to Enter Box 14 in Tax Software
When using software like TurboTax, H&R Block, or FreeTaxUSA:
- Enter each Box 14 item separately — don’t combine different codes
- Use the description exactly as shown on your W-2
- The software will usually ask you to categorize the entry from a dropdown (e.g., “NY Paid Family Leave,” “State Disability Insurance,” “Other”)
- If you can’t find a match, select “Other (not classifiable)” — this is safe for most informational entries
- For state-deductible items (NY PFL, UI/HC/WD, FAMLI), make sure the software carries the amount to your state return
Box 14 Quick-Decision Guide
Use this simple framework when you see an unfamiliar Box 14 entry:
Step 1: Is it a state-mandated contribution? (NY PFL, FAMLI, UI/HC/WD, FERS, 414H) → Enter it on your state return as directed
Step 2: Is it a pre-tax benefit (S125, CAF)? → Already excluded from Box 1 wages; generally, no further federal action needed
Step 3: Is it DISQ ESPP? → Already in Box 1; use the figure to adjust your cost basis on Schedule D only
Step 4: Is it an overtime/wage breakdown (OVT, EX OT, QOT)? → Check if your state has overtime exemptions; otherwise, informational only
Step 5: Is it an unrecognized employer-specific code? → Contact your HR or payroll department before guessing
Bottom Line
Understanding Box 14 on your W-2 can feel overwhelming due to the variety of codes and employer-specific entries. However, knowing what each code represents helps you accurately report income and deductions, avoiding errors on your federal and state returns. For more guidance on tax forms and financial management, visit Starling Consulting. Always keep your W-2 handy and double-check each entry to ensure nothing is overlooked.
While many Box 14 entries are informational only, some directly affect your state tax deductions or retirement contributions. By following the simple framework outlined in this guide, you can categorize each entry correctly without guesswork. Explore more insights and resources on our main homepage to stay informed about your taxes and financial planning.
FAQs
Q1: Is the information in Box 14 already included in my Box 1 wages?
Ans: It depends on the code. Pre-tax deductions like S125 and 414H are excluded from Box 1. Post-tax items like NY PFL and DISQ ESPP are included in Box 1.
Q2: What if Box 14 is blank on my W-2?
Ans: That’s perfectly fine. Not all employers use Box 14, and leaving it blank is completely valid.
Q3: Can my employer put anything in Box 14?
Ans: Almost anything employment-related. The IRS gives employers broad discretion here, which is why codes vary so widely between employers.
Q4: Does Box 14 affect my federal refund?
Ans: In most cases, no. The majority of Box 14 items are informational or already reflected in your Box 1 wages. State tax impact is more common.