In Turbotax Business, under Officer Information for an S-corp, it says "Enter the following percentages" with "Time Devoted to Business," "Common Stock Owned," and "Shareholder Stock Owned." There are two s-corp shareholders. The running of the business was turned over to a general manager and a bookkeeper, so one of the shareholders is basically just a treasurer who makes deposits, files some tax forms, and approves purchases, and the other shareholder works a couple days a week doing promotions. So they are involved in the business but they work 2 to 3 days a week and they've drastically cut their pay in order to pay others to do their former jobs. One of them is involved in another business he devotes most of his time to. (I'm one of these shareholders, the treasurer). I've never had to fill this out before because our sales receipts were too low. So I'm confused about what this means - the percentage of all the hours in the year, 24 hours a day, 365 days - devoted to the business?? The percentage of time devoted to THIS business as opposed to our other jobs/businesses? What does this MEAN? We only get paid for the hours we actually work, and we don't get paid when we're on vacation and paying someone else to do our jobs for us. I know the hours we've worked but I'm confused about entering them as a "percentage." Sorry, never dealt with this before. We had a big thing at the end of the year that pushed our sales over the threshold for having to fill this out...
That entire section relates to Form 1125-E and the compensation of officers.
Essentially, you list your compensation as officers, the percentage of common stock owned (e.g. if you and the other shareholder own equal amounts, then you it's 50% for each one of you), and the percentage of time each of you spent working on behalf of the corporation during the tax year for which the return is being filed.
That "percentage of time" basically relates to other jobs and/or services you performed for other companies. If, for example, you spent an average of 10 hours per week working for this S corp and 40 hours working for another company, then you would enter 20% (50 total hours: 10/50 = .2 or 20%).