This is for the QBI calculation. These wages are not reported on your return as taxable to you. Only your W-2 wages and the appropriate income amounts reported on your K-1 will be taxed on your return. But part of the QBI deduction calculation involves knowing how many wages the business paid everyone, and not just you. Actually, a high number in that box is a good thing for the QBI deduction calculation, especially if your income is above the phase-out threshold ranges.
The QBI calculation is very complex. To help understand it a little better, the following FAQ may help you. Please click on See the Entire Answer and the embedded link How is the deduction calculated? (Not for the faint of heart): https://ttlc.intuit.com/replies/7019998
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