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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4666
Experience:  35 years tax experience, including four years at a Big 4 firm.
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C Corporation Irs Form 1120 Line 12 : "Compensation of

Customer Question

C Corporation Irs Form 1120 Line 12 : "Compensation of Officers" Is it subject to employment/payroll taxes? How does it compare to bonus / dividends?
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.
Hi from just answer. I'mCustomer and can assist.
The line 12 compensation is subject to employment taxes. This amount is matched to w-2 amounts submitted separately to the ORS.
Bonuses that are included in w-2 totals are also subject to employment taxes. Dividends are not.
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