Stock issued to Corporate Officer

[wsbjr]

My client is an officer of a newly formed corporation. He didn't invest in any of the stock, but the corporation issued him a quantity of shares at par as part of his compensation for the year(issued near start-up). How should he account for that and is it taxed as wages?

[taxmandan]

stock for work

My client is an officer of a newly formed corporation. He didn't invest in any of the stock, but the corporation issued him a quantity of shares at par as part of his compensation for the year(issued near start-up). How should he account for that and is it taxed as wages?

It is taxable wages and belongs on a W-2.

[OldJack]

The corp book entry is to debit wages/salary for the FMV of the stock and credit common stock issued for the par value with any remainder above par value credited to paid-in-capital.