Head Hunter filing as S-Corp...where to enter labor related cost?

[AZ-Tax]

New start up Co. elected S-Corp filing for first tax yr 2014. Laborers are employees of Co. and Co. rents employees out to businesses therefore handles everything and anything relating to their employees payroll (Work Comp, Payroll taxes, health ins, outside payroll processing vendor etc.). Form 1120s has a line for Payroll taxes but what about remaining payroll related exps?

[kathyc2]

I think you could either put it on page 1 line 8 or on line 3 of 1125A. I don't think either would be wrong.

IMO the 1125A treatment would be the "most correct" as the payments are a direct cost of the sale.