[kayzee997]

As per my understanding of it, terms such as employee salary/officer compensation are deducted to determine ordinary s-corp income and not added to partners k-1

terms such as guaranteed payments are deducted from s-corp orinary income and appear on partner’s K-1 (like partnership)

is the above correct? if so what would be the ideal treatment for terms such as
– payment/compensation to partner A
– Salary to partner B

[murano]

I don't think there is such thing as ‘guaranteed payments' in S corp
All of the salary of an S corp shareholder employee appears on his W-2 (subject to payroll and income tax) as long as it's reasonable conpensation and is deductible to the corp. His share of S corp income is on K-1(subject to income tax only, no SE tax)

[Author]

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