W-2 Box 12 Code J refers to what amount with respect to sick pay plans?

W-2 Box 12 Code J specifically refers to the amount of sick pay that is not includible in income due to employee contributions. This means that if an employee has contributed to a sick pay plan, the portion of the sick pay they receive that is attributable to their own contributions is not considered taxable income. Therefore, the amount indicated in Box 12 with Code J helps employees understand what portion of their sick pay affects their taxable income.

When sick pay is received, it may be fully or partially excluded from income based on how the contributions were made. If the employer pays the entire premium for the sick pay plan, the sick pay received is generally taxable. However, if the employee has made contributions out of their paycheck, that portion of the sick pay is not taxed, which is what Box 12 Code J communicates. Understanding this distinction is important for accurately reporting income on tax returns.