Hello,
We tested our cafeteria plan late in the year and found we failed the DCAP 55% test. We have just one pay period left in the year, and we're working with our payroll vendor (ADP WFN) to create an imputed income code to include the amounts that caused the plan to fail in HCEs' gross income. However, does Box 10 of the employee's W-2's need to be modified as well? We have been scrambling to find assistance with how to make the corrections, but we haven't found any guidance on how this would actually appear for employees on their W-2's.
