Which W-2 Box 12 code represents employer contributions made to a HSAs?

The correct choice identifies Code W on the W-2 form, which is specifically designated for employer contributions made to Health Savings Accounts (HSAs). This code is used to report amounts contributed by the employer to an employee's HSA, allowing both the employee and the employer to benefit from tax advantages associated with these health accounts.

Health Savings Accounts are tax-advantaged accounts that can be used to pay for qualified medical expenses. Contributions made by the employer, when reported with Code W, do not trigger immediate tax liabilities for the employee and can help maximize their savings for healthcare costs.

This reporting is essential for employees to recognize how much their employers have contributed to their HSAs, as these contributions may affect their individual tax situation and ensure accuracy when filing taxes. The other codes listed do not correspond to employer HSA contributions: Code V is generally used for income from the exercise of nonstatutory stock options, Code T relates to sick pay, and Code R is not relevant to HSA reporting.