Why does my Schedule K-1 Form 1120S show W2-wages in Box 17 under code W if I was not an employee of the company and I received no wages?

This information has to do with the new qualified business income deduction (QBID) or Section 199A.

As an owner of the S corporation you could qualify for this deduction.  The wages on that line have nothing to do with wages paid to you but the necessary information related to the new Section 199A deduction.

Input the information as presented.  If you don't, you could lose out on a potential tax deduction.