I am the sole employee of an S Corporation.
In the Federal 1120s there is line 9 "Salaries and wages" and line 12 "Taxes and licenses".
If as a sole employee I had say $50,000 in salary (W-2 Box 1) of which $7,500 was withheld in taxes (W-2 boxes 2 + 4 + 6) then do I report on the 1120s:
(a) Line 8 (Salaries and wages) $42,500
Line 12 (Taxes and licenses) $7,500 (W-2 lines 2 + 4 + 6)
or
(b) Line 8 (Salaries and wages) $50,000 (W-2 Box 1)
Line 12 (taxes and licenses) $0
