Code C - box 12 W-2

Reviewing my client's W-2s, I noticed box 12, Code "C".  Not seen this before.  Looking at the instructions, this is the cost of employee portion over $50K of coverage?  Would this be considered a "fringe" benefit, to be added back to    W-2, similarly to employee contribution to 40(k)??

Ha, this is the "common" difference between W-2 wages and "wages for withholding purposes" under 3401, since that amount is typically not part of the 3401 definition. 

A quick peek over at the EOB indicates the amount is typically included in 415 compensation, if not explicitly excluded separately. 

But the prime consideration would be your plan's definition of Compensation.

and it would already be included in box 1 taxable so no add back required

57 minutes ago, thepensionmaven said:

to be added back to W-2, similarly to employee contribution to 40(k)??

FWIW, be careful if your client is using a payroll service and has Roth deferrals. We've had issues with this on occasion where the payroll service provider doesn't understand, and adds the Roth deferrals back into Box 1 so they are being included in income twice.

CuseFan, that was my first impression, thanks.