are you allowed to show negative wages on company tax return due to cogs contra account?

[spacestruct]

hello, we use a wages contra account to move shop wage cost above the line to cost of goods sold.  the problem is on our tax return once we remove the officer salaries since they are reported on a separate line the wages are negative. are you allowed to show negative wages on company tax return due to cogs contra account?

[AliciaP1]

No, you should just include the cost of goods sold wages in full as Cost of Labor in your cost of goods sold section and Officer Salaries with the Officer/Shareholder salary information.  Your contra account fixes your books for reporting the way you want to, but you should manually split the amounts for the tax return.  You do not have to enter balancing entries to enter the information on the tax return.