TurboTax splitting W-2 Wages among Shareholders on Statement A-QBI Pass-through Entity Reporting

[TurboJake]

Last year, we had one employee (also a shareholder) that receives W-2 wages.  There are two shareholders in the S-Corp, and we are filing our 1120S using TurboTax Business.

On the Statement A - QBI Pass-through Entity Reporting (on the K-1s), TurboTax is splitting the "W-2 Wages" among each of the Shareholders based on their shareholder %s.  Shouldn't 100% of the "W-2 Wages" be paid to the employee/shareholder that was paid the wages on their W-2?

NOTE: we are not using TurboTax to file our W-2s, we are using our payroll processor...so TurboTax doesn't know which employees are paid W-2 wages.

How do I correct this?  Thank you in advance!

[MinhT1 · Accepted solution]

TurboTax is correct in splitting wages proportionately to the shareholding percentage. The amount of wages reported on Schedule K-1 is used to calculate the QBI deduction for each shareholder. It represents the percentage of wages allocated to the shareholder, no matter who actually received the wages.