Menu

Search

Knowledge Base


10838: 1120 - Salaries and Wages - Less Employment Credits


1120 Corporation

How is the amount on Form 1120, line 13, Salaries and Wages (less employment credits) calculated?

 

The amount on line 13 comes from the salaries and wages paid to employees, minus any credits that the corporation receives related to employment. Credits include those from Form 5884, Form 5884-A, Form 8844, Form 8845, Form 8932, and Form 8994. 

Salaries and wages paid are entered on the DED screen, line 13 Salaries and wages.

  • Note: This amount adjusts any amount entered on screen F, line 22 Labor hired.
  • The salaries and wages amount should not include compensation of officers. Enter officer compensation data on screen E under the Compensation section on the Officer’s deductible compensation line or as Officer Compensation on line 12 of the DED screen.

Wks Sal/Wage generates in View/Print mode listing the adjustments from credits if any of the following forms are present on the return: 

  • Form 5884 Work Opportunity Credit - data entry is located on the first Credits tab > screen 5884
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. Use caution; generally, the salaries and wages amount must be reduced by the amount on line 2 of this form. 
  • Form 5884-A Credits for Affected Disaster Area Employers - data entry is located on the first Credits tab > screen 588A.
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. Use caution; generally, the salaries and wages amount must be reduced by the amount on line 2 of this form. 
    • See Related Links below for more details on this credit. 
  • Form 8844 Empowerment Zone Creditdata entry is located on the first Credits tab > screen 8844.
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. 
  • From 8845 Indian Employment Creditdata entry is located on the first Credits tab > screen 8845.
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. 
    • This credit expired on December 31, 2021 and was not extended by congress. The credit cannot be calculated in Drake22.
  • Form 8932 Employer Differential Wage Payments - data entry is located on the second Credits tab > screen 8932.
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. 
  • Form 8994 Employer Credit for Paid Family and Medical Leave - data entry is located on the second Credits tab > screen 8994.
    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable. Use caution; generally, the salaries and wages amount must be reduced by the amount on line 1 of this form. 

Wks Sal/Wage only generates if Form 1120, line 13 contains an adjustment to the DED or F screen entries from an applicable credit. This worksheet is for informational purposes only and is not included with an e-filed return.

  • In Drake15 and prior, this worksheet was called ATT_CSW

Related Links


Also In This Category


On a scale of 1-5, please rate the helpfulness of this article


Not Helpful
Very Helpful
Optionally provide private feedback to help us improve this article...

Thank you for your feedback!


Details
Article has been viewed 21K times.
Last Modified: 6 Months Ago
Rated 4 stars based on 1 vote
Options