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.