What is represented by W-2 Box 12 Code DD?

Box 12 Code DD on the W-2 form specifically represents the cost of employer-sponsored health coverage. This amount includes both the portion paid by the employer as well as any amount deducted from the employee's paycheck for health insurance coverage. The purpose of this reporting is to provide employees with information regarding the total cost of their health insurance benefits, which can be helpful for understanding the value of their total compensation package and for reporting health coverage compliance under the Affordable Care Act.

The other options present different types of information but do not correspond to what is represented by Code DD. For example, designated Roth contributions would be reported under a different code, while HIRE exempt wages and tips would also have a distinct designation. The Individual Taxpayer Identification Number (ITIN) is not reported on a W-2 form at all, thereby making those choices incorrect in the context of what Box 12 Code DD signifies.