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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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What does “Less Other Café 125” on my W2 mean?

Customer Question

This is the first year I've noticed the following adjustment to my W-2 statement: 
Gross Pay: $.... 
Plus GTL (C-Box 12): $.... 
Less Other Cafe 125: $.... 
What are the second and third items? Thank you in advance for any help you might have.

Submitted: 10 years ago.
Category: Tax
Expert:  Wendy Reed replied 10 years ago.

GTL is group term life insurance. If you are insured for more than 50k through your employer, the excess is considered a fringe benefit and a portion of the cost of this insurance is taxable.

Cafe 125 is the IRS code for pre-tax federal deductions, usually medical/dental insurance.

GTL income is included in your federal taxable wages, cafe125 is not.