I am the sole employee of an S Corporation.
In the Federal 1120s there is line 9 "Salaries and wages" and line 12 "Taxes and licenses".
If as a sole employee I had say $50,000 in salary (W-2 Box 1) of which $7,500 was withheld in taxes (W-2 boxes 2 + 4 + 6) then do I report on the 1120s:
(a) Line 8 (Salaries and wages) $42,500
Line 12 (Taxes and licenses) $7,500 (W-2 lines 2 + 4 + 6)
or
(b) Line 8 (Salaries and wages) $50,000 (W-2 Box 1)
Line 12 (taxes and licenses) $0
You'll need to sign in or create an account to connect with an expert.
Neither one. If you are using TurboTax Business, I recommend you enter your Salary and the payroll tax via the step-by-step. Your salary of $50,000 salary goes on line 7 - Compensation of Officers. The taxes withheld from your pay is not an expense, but the payroll taxes that the business paid is an expense. This would include the employer's share of Social Security and Medicare, and federal and state unemployment tax. Those payroll taxes will show up on Line 12 of the 1120-S, but are entered on the Tax and Licenses Worksheet.
Neither one. If you are using TurboTax Business, I recommend you enter your Salary and the payroll tax via the step-by-step. Your salary of $50,000 salary goes on line 7 - Compensation of Officers. The taxes withheld from your pay is not an expense, but the payroll taxes that the business paid is an expense. This would include the employer's share of Social Security and Medicare, and federal and state unemployment tax. Those payroll taxes will show up on Line 12 of the 1120-S, but are entered on the Tax and Licenses Worksheet.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
blakewood
Level 1
peenda
New Member
Smacdon
Level 1
JAC27
New Member
timk225
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.