Doing some more research.
In looking at the instructions for Schedule K-1 from the IRS:
Box 4a. Guaranteed Payments for Services
Guaranteed payments are payments made by a partnership to a partner that are determined without regard to the partnership's income. Generally, amounts on this line aren't passive income, and you should report them on Schedule E (Form 1040), line 28, column (k) (for example, guaranteed payments for personal services).
The fact that these values, when entered as you suggest, appear in two difference places (on Line 4a and Line 13) tells me that something is not correct here. These values are not deductible as an expense by the company (Line 4a) and deductible by the individual on the 1040 (Line 13):
Code M. Amounts paid for medical insurance. Any amounts paid during the tax year for insurance that constitutes medical care for you, your spouse, your dependents, and your children under age 27 who aren't dependents. On Schedule 1 (Form 1040), line 17, you may be allowed to deduct such amounts, even if you don't itemize deductions. If you do itemize deductions, enter on Schedule A (Form 1040), line 1, any amounts not deducted on Schedule 1 (Form 1040), line 17.
BTW, by entering the value in the "Other" section (as noted in previous reply), the SE Worksheet is correct, the value is simply missing from the K-1.
I can override this stuff and make it look like is did last year, but I would like to know what is happening.
Thanks again.
