I have a question about how to report wages for S-corporation
shareholders. I know that the (reasonable) wages portion of their
compensation is subject to withholding taxes. But does that mean they
get a W-2 for that portion of their compensation, and K-1 for the
balance? Or does it all go on a K-1?

Since there's nothing on the K-1 to show taxes withheld, I'd think
they'd get both. But I just want to check with those of you who
actually do this work.

Thanks.


--
Stu
http://DownToEarthLawyer.com


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On Monday, July 31, 2023 at 12:16:16 PM UTC-7, Stuart O. Bronstein wrote:

I have a question about how to report wages for S-corporation
shareholders. I know that the (reasonable) wages portion of their compensation is subject to withholding taxes. But does that mean they
get a W-2 for that portion of their compensation, and K-1 for the
balance? Or does it all go on a K-1?

Since there's nothing on the K-1 to show taxes withheld, I'd think
they'd get both. But I just want to check with those of you who
actually do this work.

Thanks.

--
Stu
http://DownToEarthLawyer.com

--
This email has been checked for viruses by AVG antivirus software. www.avg.com

Hi Stu,


Yes, an S-corp shareholder gets a W-2, and a K-1. W-2 provides info about his compensation, and a K-1 provides info about all other income.

Hope it helps.

Thanks!

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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Ellen Domorad <[email protected]> wrote:

Stuart O. Bronstein wrote:

I have a question about how to report wages for S-corporation
shareholders. I know that the (reasonable) wages portion of their
compensation is subject to withholding taxes. But does that mean
they get a W-2 for that portion of their compensation, and K-1
for the balance? Or does it all go on a K-1?

Since there's nothing on the K-1 to show taxes withheld, I'd
think they'd get both. But I just want to check with those of you
who actually do this work.

Yes, an S-corp shareholder gets a W-2, and a K-1. W-2 provides
info about his compensation, and a K-1 provides info about all
other income.

Hope it helps.

It helps a lot. That's exactly what I needed to know. Thanks Ellen!!!

--
Stu
http://DownToEarthLawyer.com

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
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