Where do I enter officer information for Forms 1120 and 1120-S? Why is Form 1125-E not being produced?
For form 1120, officer information can be entered on screen E to complete Form 1125-E (if required). To access screen E from the Data Entry Menu, click E (on the 1120 General tab or the 1120S States tab) or enter E into the selector field and press enter. Enter the data in the fields provided.
Beginning in Drake17, the data entry has been streamlined to decrease duplicate data entry for an 1120-S return. The information for an officer that is also a shareholder may be entered on the K1 screen without the need for a separate screen E. Simply fill out the K1 screen with the demographic information for the shareholder and then complete the Officer Information section to have the shareholder recorded as an officer on Form 1125-E (if required).
Screen E for Form 1125-E is still available for information on officers who are NOT shareholders.
Note: Do not duplicate information on screen E for shareholder officers that are entered on screen K1. This will cause duplicate entries on Form 1125-E in view.
In Drake16 and prior, only screen E, Officer Information, can be used to enter officer data in either return type.
Employment Dates - If an entry is made in the Date employed in the position to field (indicating that the officer is no longer employed with the corporation), the program will not update the officer’s information to the next year.
Ownership and Participation - To enter the ownership percentage for the officer, enter the percentage as a whole number. For example, enter 40 to indicate 40 percent.
Generating Form 1125-E
Form 1125-E, Compensation of Officers is not generated automatically with the return unless required. Total receipts (line 1a, plus lines 4 through 10) on Form 1120 or 1120-S must be $500,000 or more.
To force the software to print Form 1125-E, on the PRNT screen (Miscellaneous tab) select Force Form 1125-E, Officer Compensation at the top left under Items to Print.
Screens E and/or K1 (1120S only) compensation amount totals are calculated and carried to line 12 of Form 1120 or line 7 of Form 1120-S.
The total of officer compensation can be entered in the Officer Compensation override field on the DED screen (generally used when Form 1125-E is not required). An entry in that field overrides any calculations from screen E, changing lines 12 and 27 of the 1120 but not Form 1125-E.