@Zman wrote:
Do I report it as "Salaries and Wages" or "Officer Compensation"? What is the difference?
If your corporation's total receipts are $500,00 or more, then you need to report compensation of officers on Form 1125-E. You can report your salary as officer compensation, regardless.
Either way, the compensation is subject to withholding (W-2) but not if the officers do not perform services for the corporation. In the case of a C corporation, the IRS wants to ensure that the compensation is not excessive (as opposed to an S corporation) since salaries and wages are deductible expenses but dividends are not.
