IRS Instructions for form 1120-S, page 17, requires that compensation for the owner be segregated from the wages of other employees. These questions are trying to determine whether the W-2 wages that were reported belonged to the owner or the owner's employees.
Enter on line 7 the total compensation of all officers paid or incurred in the trade or business activities of the corporation. The corporation determines who is an officer under the laws of the state where it is incorporated.
Enter on line 8 the total salaries and wages paid or incurred to employees (other than officers) during the tax year.
It sounds like the answer to (3) should be '1' but you should review your entries under Compensation and Benefits under Federal Taxes and Deductions.
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