No, wages are reported on Form W2.
What is reported on Form K1 is generated from the Form 1120-S.
Whoever prepared the company's 1120-S did not go to the right place in the program to allocate the wages paid properly as they were actually paid and they were allocated (default) on the K1 based on the shareholder percentages.
There should be amended K1s issued to report the correct amounts.
