The remaining overpayment you made to yourselves can be classified as distributions if you have not exceeded the 50%/50% rule for the year. So, you would report your W-2s to match the 941s filed, but the excess of the $4,000/month checks would get booked to Shareholder's Distributions.
For example, each check written was for $2,000 but $153 should have been deducted for Social Security & Medicare and assume $200 for federal withholding. The net check you wrote would have been $1,647. That would classify $353 from each check as a distribution to the shareholder. For the year, that would result in you each having $24,000 gross wages, $1,488 in Social Security tax, $357.60 in Medicare tax, and $2,400 in federal withholding. The distribution balance (if these were the only distributions taken for the year) would total $4,236 each.
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