Drake Tax - 1120: Salaries and Wages - Less Employment Credits

Article #: 10838

Last Updated: October 21, 2024

 

Tags: Drake Tax

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The amount on Form 1120, line 13, Salaries and Wages (less employment credits) comes from the salaries and wages paid to employees, minus any credits that the corporation receives related to employment.

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

    Tip  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 either

    • screen E under the Compensation section on the Officer’s deductible compensation line

    • screen DED as Officer Compensation on line 12.

Wks Sal/Wage generates in View/Print mode listing the adjustments from credits from Form 5884, Form 5884-A, Form 8844, Form 8845, Form 8932, and Form 8994 are present on the return.

Note  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.

Credit Entries

  • Form 5884 Work Opportunity Credit - use 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 - use screen 588A.

    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable.

      Caution  Generally, the salaries and wages amount must be reduced by the amount on line 2 of this form.

  • Form 8844 Empowerment Zone Credit - use screen 8844.

    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable.

  • From 8845 Indian Employment Credit - use screen 8845 (in available years).

    • 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.

  • Form 8932 Employer Differential Wage Payments - use 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 - use screen 8994.

    • There is a check box to elect to not adjust the wage expenses for this credit, if applicable.

      Caution  Generally, the salaries and wages amount must be reduced by the amount on line 1 of this form.