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Calculating payroll or compensation of officers (for income taxes)

If you file Form 1120 or 1120S, the IRS requires that you report compensation for company officers separately from employee wages.

  • Click the Change Tabs drop-down list and choose Employment Info.

  • Click the Employment tab.

  • Click the Type drop-down list and choose Officer.

  • Add payroll items for officer salary, including sick and vacation salary.

To generate reports showing officers' salaries

  1. Go to the Reports menu, choose Employees & Payroll, and then click Payroll Summary.

  2. Make sure the date range is for the tax period you want.

  3. Add together the adjusted gross pay amounts for your company officers.

    This is the "Compensation of officers" line of Form 1120 or 1120S.

  4. Add together the adjusted gross pay amounts for your employees.

    This is the "Salaries and wages" line of Form 1120 or 1120S.

See also

KB ID# H_PAY_CALC_OFFICER_TAX_SALARY
12/5/2016 9:44:55 PM
PPRDQSSWS407 9138 Pro 2017 5caaba