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S Corporation Employees, Shareholders and Corporate Officers

    https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
    Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes. If an officer does not perform any services or only performs minor services and is not entitled to compensation, the officer would not be considered an employee. Distributions…

How to record shareholder or corporate officer dis...

    https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-to-record-shareholder-or-corporate-officer-distribution/00/553392
    Apr 30, 2020 · DIstributions are out of company profit but are not a company expense, thus the affect the company retained earnings at year-end and if distributions exceed earings then those distributions are regular income to the recipient. Your entry will be Credit Loan (to return it to 0) and Debit Shareholder Distribution (equity)

Wage Compensation for S Corporation Officers

    https://www.irs.gov/pub/irs-news/fs-08-25.pdf
    "Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation." The amount of the compensation will never exceed the amount received by …

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