How to report/deduct officer salary?

[Zman]

I have a closely-held C-Corp. I paid myself salary. In TurboTax Business, Do I report it as "Salaries and Wages" or "Officer Compensation"? What is the difference?

[Carl]

What is the difference?

Sounds to me like you need professional help. Officer Compensation is the required minimum distribution offers of a corporation are required to take by law each year. 

Since an officer can also be a W-2 employee of a corporation, salaries & wages is what is paid as compensation for work provided to the corporation and gets reported on a W-2 issued to the officer separate from Officer Compensation.

If you have to ask what the difference is, that's a sure sign you need professional help with this. The cost of professional help will be a pittance in comparison to the fines/penalties that will be assessed if it's not done right. Please seek professional help.

This is particularly important if your state also taxes personal income. Then, it's a double-whammy on the potential fines and penalties.

[Anonymous_]

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@Zman wrote:

Do I report it as "Salaries and Wages" or "Officer Compensation"? What is the difference?

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If your corporation's total receipts are $500,00 or more, then you need to report compensation of officers on Form 1125-E. You can report your salary as officer compensation, regardless.

Either way, the compensation is subject to withholding (W-2) but not if the officers do not perform services for the corporation. In the case of a C corporation, the IRS wants to ensure that the compensation is not excessive (as opposed to an S corporation) since salaries and wages are deductible expenses but dividends are not.

[Zman]

Thanks! I am processing this via the W-2 route.

I am familiar with W2 and dividents. I am confused with the "officer compensation" lingo.
Is officer comp about dividends then? If not, then what is it and are there any benefits to using it?