S-corporation Shareholders

Jul 31, 2023 Last reply: 2 years ago 2 Replies
S

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.



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E

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!

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S

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

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