S-corp owner's salary

[Questionguy101]

Does the wages of a S-corp owner go to line 7 as "Compensation of officers" or line 8 as "salaries and wages" on Form 1120S?

Thank you for your help in advance.

[oceanlovin'ea]

Line 7 - compensation of officers. He should be considered the president if it is a one person s corp.

Linda, EA

[Questionguy101]

Line 7 - compensation of officers. He should be considered the president if it is a one person s corp.

Linda, EA

Thank you Linda. I agree with you because I also think it should go to line 7.

I use Drake software. In the data entry menu, the description for line 8 is "Salaries and wages paid to shareholder employees" which seems to describe salary paid to a S-corp sole owner. But then if you enter the number there, it will print it on line 8, instead of line 7. So it seems to me, for whatever reason, Drake software thinks it should go to line 8.

[Gary2]

Thank you Linda. I agree with you because I also think it should go to line 7.

I use Drake software. In the data entry menu, the description for line 8 is "Salaries and wages paid to shareholder employees" which seems to describe salary paid to a S-corp sole owner. But then if you enter the number there, it will print it on line 8, instead of line 7. So it seems to me, for whatever reason, Drake software thinks it should go to line 8.

Agreed that it goes on line 7. The description you quoted for line 8 is unfortunately over-broad. The way I read the IRS instructions, wages for a shareholder employee who is not an officer would go on line 8. But it's entirely possible for an S-corp to have employees who own stock, even more than 2%, without being officers.

The rules about fair compensation apply to both, not just the officers whose salaries are on line 7.