Dear arvandbiz:
As a TurboTax Business agent, I'd be happy to answer that question for you.
Strictly speaking, if you are a significant owner (or the sole owner) of an S-Corporation, and you actively perform services for it, then you would enter your W-2 wages as "Officers Compensation," rather than "Employees Salary."
Practically speaking, it really doesn't matter which one of these categories you choose. Please allow me to show you why. In order to do that, first download and open up a blank Form 1120-S here:
http://www.irs.gov/pub/irs-pdf/f1120s.pdf
As you'll instantly see from looking at Lines 7 and 8, both types of W-2 compensation get deducted from the S-Corp's taxable "flow through" income in the same way. The only filing difference, in fact, other than the line number, is that when the S-Corporation's gross receipts exceeds $500,000 in total, then Form 1125-E must be completed as well (and that form is included with TurboTax, by the way, for use if necessary).
Thus, you may enter your W-2 wages however, you like, in either place -- although Officers Compensation is probably technically correct in your case.
Thanks for asking this question, and good luck to you!
Regards
