Do i include social security tip wages in the officers compensation total on form 1120s

[DanielV01 · Accepted solution]

Yes, in a manner of speaking.  The easiest way to report the officers' compensation is to take the highest number that you see in boxes 1, 3, and 5 (generally box 5).  This amount includes the wages, the social security wages, tips, all of the withholdings, and all of the 401K and health insurance premium deductions.  This way, you only have to report the Social Security and Medicare taxes that were paid by the company as well as matching amounts.  

In other words, rather than adding boxes 3 and 7, you may choose to use box 5 instead, which has all of the wage information.

[Ashleeward]

In my S Corp, we put $19,000 of employee deferral and had health insurance so my amounts won’t match box 3 and box 5. Do I need to include a statement to irs explaining this?example:

salary 22,000

employee deferral $19000

health insurance $3000 so box 1 $6,000 box 3&5 $22,000

on the amount asking for wages- id put $25000. Do I need to attach statement to irs explaining why the W3 wages and my input don’t match or can they automatically figure this out? It has red flag on bottom to make sure they match.