Massachusetts W-2 Box 14 Codes Explained

The annual Form W-2, Wage and Tax Statement, is a document detailing the income you earned and the taxes your employer withheld throughout the year. It serves as a primary source for completing your federal and state income tax returns. While many boxes on the form, like those for wages and federal income tax withheld, are straightforward, Box 14 can often be a source of confusion for taxpayers.

This box is used by employers to report various items of income and deductions that do not have a designated spot elsewhere on the form. For Massachusetts employees, this section frequently contains specific state-mandated deductions and other informational amounts. Understanding these codes is necessary for accurately filing your taxes and ensuring you account for all relevant financial information from your employment.

The General Purpose of W-2 Box 14

Box 14 on the Form W-2 serves as a flexible, informational reporting area for employers. The Internal Revenue Service (IRS) does not mandate a universal set of codes for this box, which results in significant variation from one employer to another. It is essentially a “catch-all” space where companies can list financial information that is relevant to an employee’s compensation but does not fit into the highly regulated boxes like 1 through 12.

Common examples found in Box 14 across the country include union dues, employer-paid tuition assistance, after-tax contributions to retirement plans, and charitable contributions made via payroll deduction. The information can affect a taxpayer’s state tax return or provide details needed for certain deductions or credits. Because the descriptions and codes are employer-specific, the same type of deduction may be labeled differently by different companies.

Common Massachusetts Box 14 Codes Explained

MA PFML / MAPFML

A frequent entry in Box 14 for Massachusetts employees is “MA PFML” or a similar variation, which stands for Massachusetts Paid Family and Medical Leave. This represents the total amount of your mandatory contributions to the state’s Paid Family and Medical Leave program. This state-administered program provides temporary income replacement to eligible workers who need to take time off from work for specific family or medical reasons.

The PFML program allows employees to take paid leave for bonding with a newborn, newly adopted, or new foster child. It also covers leave to care for a family member with a serious health condition or to manage one’s own serious health issue.

SEC 125

The code “SEC 125” or “IRC125” refers to contributions made under a Section 125 cafeteria plan. This is a benefit plan offered by an employer that allows employees to pay for certain qualified expenses with pre-tax dollars. The amount shown in Box 14 represents the total you contributed from your paycheck to this plan during the year.

These plans are a popular way to pay for benefits such as health insurance premiums, dental and vision coverage, and contributions to a Health Savings Account (HSA) or a Flexible Spending Account (FSA). By using pre-tax dollars, you effectively lower your taxable income.

Tax Treatment of Massachusetts Box 14 Amounts

The tax implications of the amounts listed in Box 14 vary depending on the specific item. For Massachusetts Paid Family and Medical Leave (MA PFML) contributions, these mandatory payments are included in your federal gross income, meaning they are made on a post-tax basis for federal purposes. However, if you itemize your deductions, you can include these contributions as part of your State and Local Tax (SALT) deduction, subject to the applicable limits. For your Massachusetts state tax return, these contributions are not deductible.

Amounts labeled “SEC 125” for cafeteria plan contributions have already provided their tax benefit. These funds were deducted from your pay before income taxes were calculated, which means the wages reported in Box 1 of your W-2 have already been reduced by this amount. Therefore, you do not need to take any further action or deduction for this item on your tax return.

The tax treatment of other items can vary. For example, if your employer reports post-tax health insurance premiums in Box 14, these amounts are not deductible. Contributions to certain retirement plans listed in Box 14 may be deductible depending on the type of plan and your specific circumstances. It is important to understand whether each item was deducted on a pre-tax or post-tax basis to determine its effect on your tax return.

Addressing Unlisted Codes or Potential Errors

If you encounter a description in Box 14 you do not recognize, contact your employer’s human resources or payroll department. They can provide a definitive explanation of what the code represents and how it affects your overall compensation. If you believe there is an error in Box 14, or any other part of your W-2, you should also address it with your employer immediately.

Should an error be confirmed, your employer is required to issue a Form W-2c, Corrected Wage and Tax Statement. This official form corrects the information on the original W-2 and is sent to both you and the Social Security Administration. You would then use the information on the Form W-2c to file or, if you have already filed, amend your tax return.