Hi, I am a S-Corp owner. I am both the employer and single employee of the S-Corp. I pay myself a salary for which a W2 is issued.
When filing my Business tax return for my S-Corp, form 1120S has the following line:
8 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . 8
Here is my question:
For the consideration of "Salaries and wages", which box from my W2 should be considered? Would it be "Box 1" or would it be "Box 3"?
It seems to me that "Box 3" should be the one considered here, since it reflects the "Total salary" paid to the employee by employer, whereas "Box 1" reflects various other considerations like 401K contribution by the employee etc. (which shouldn't impact how much salary the employer pays to the employee).
Or Would it be something else?
Could you please clarify? Thanks.
