We are an Arizona LLC, that filed an election to file as an s corp (form 2553). We filed late and it wasnt approved until january 2018, but it was approved retroactively starting january 1st 2017. I did not pay myself wages, because I was an LLC, so I wasn't supposed to, but now filing as an s-corp, I am required to take a wage, but its 2018 already, and I only took distributions for 2017 (owners draw). There are 3 employees that receive a W2, and the LLC income is about 250k per year. I use ADP for payroll, and they wont accept reporting wages after 12/31. I've heard it's "ok" to file a 1099-misc and report is as officers compensation (line 7 on 1120s). In 2018 I will be taking a wage, so I won't have this issue next year, but the timing didn't work out this year. Just wondering what the best way to handle this is.
