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How to enter corporate officer compensation for Form 1120 in Lacerte

SOLVEDby IntuitLacerte Tax97Updated September 16, 2021

Follow these steps to enter officer compensation:

  1. Go to Screen 2, Officer Information.
  2. Enter the fields in the Officer Information section:
    • Officer name
    • Street address, city, state, ZIP code
    • Social Security number
    • Officer title
  3. Go to Screen 20, Deductions.
  4. Scroll down to the Salaries and Wages section.
  5. In the Officer Salaries subsection, select the Compensation of Officers button.
  6. Enter the officer's compensation. These entries must correspond to the numbers assigned to the officer in Screen 2, Officer Information.

The input for officer salaries are limited to 12 officers. Any additional officers must be entered using batch input.

To enter compensation for more than twelve officers:

  1. Go to Screen 20, Deductions.
  2. Hold down Ctrl+W to switch to Batch mode.
  3. Select 20.1 Deductions from the left panel (if not already there).
  4. Locate a blank line under the Code column.
  5. Enter 113 in the Code column (for officer 13) and enter the Amount
  6. Enter 114 in the Code column (for officer 14) and enter the Amount.
    • Continue entering officers in sequential order (up to the maximum of 49 officers allowed). 
    • For the amount of wages to correspond to the correct officer, the last two digits of the code must match the number assigned to the officer on Screen 2, Officer Information.
    • For example, officer 15 should have wages entered in code 115. This is especially important if the numbering in Screen 2 skips because officers have been deleted in prior years.
  7. Once finished, hold Ctrl+W again to switch back to Interactive mode.

Schedule 1125-E, Compensation of Officers will calculate when total receipts from Form 1120, Page 1 (Line 1a plus Lines 4 to 10) are $500,000 or more. If total receipts are less than $500,000, the Schedule 1125-E won't generate, though the compensation total will still appear on Form 1120, Page 1, Line 12.

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