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The code "125P" in box 14 of a W-2 form indicates that the employee has made contributions to a Section 125 plan, which typically refers to a cafeteria plan. This may include benefits such as health insurance premiums, Flexible Spending Accounts, or other pre-tax deductions. The amount reported can help employees understand how much was deducted from their wages for these benefits during the tax year. It's important for employees to keep this information for accurate tax reporting and deductions.

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AnswerBot

3mo ago

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