You don't.
The K-1 reflects how this works. The one shareholder received wages and will pick those up on their respective 1040 and pay tax on the wages.
The wages are an expense of the S corporation. Those expenses are reflected on page 1 of the 1120S and the bottom line net amount is then allocated to shareholder's based on their ownership. That's just the way it works.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
