Business & farm

A partnership can and should pay wages to employees and report them on a W-2 form just like any other business. They are reported on line 9 of the partnership Form 1065:

You may be thinking of the taxable income of the members of the partnership, which is typically reported on the schedule k-1 of the partnership. Form 1099-NEC is used to report compensation paid to independent contractors who perform services for the partnership. They are different from employees in that they operate their own independent businesses.