I have 2 S-Corps with PEOs providing payroll services. I break out only the officer's comp (one officer) to line 7 of the 1120-S with the balance of the PEO costs to Contract Labor, whether administrative or Costs of Goods Sold. I just prefer the presentation of reporting officer's wages separately rather than showing -0- on line 7.
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Andrew Demsky
Andrew C. Demsky, CPA
North Bellmore NY
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