Where to Enter Officer Compensation in Drake Tax
On an 1120-S, officer information for Form 1125-E is entered on screen K1E, and the compensation totals carry to Form 1120-S page 1 line 7. On an 1120, officer information is entered on screen E. Drake only produces Form 1125-E when total receipts reach $500,000, and PRNT has a Force-print Form 1125-E option.
- Open the officer screen
- Complete the officer section for each officer
- Add titles where needed
- Let the totals carry
- Force the form if you want it printed
- Data entry
- Screen K1E (1120-S) or E (1120)
- Form 1125-E officer information
| Trial balance account | Drake Tax screen and field | Lands on |
|---|---|---|
| Officer compensation | Screen K1E officer information (1120-S) | Page 1 line 7 and Form 1125-E |
| Officer compensation (1120) | Screen E, Officer Information | Page 1 line 12 and Form 1125-E |
| Officer compensation override | The line 7 field itself | Page 1 only. Form 1125-E is unaffected |
| Salaries and wages, non officer | Income and deductions, salaries and wages | Page 1 line 8 |
| Officer life insurance premiums | Nondeductible where the company is the beneficiary | Schedule M-1 addback |
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Try it freeWhere to Enter Officer Compensation in Drake Tax on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation (the account this page is about) | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Two screens, depending on the module and the version
Drake's 1120-S guidance puts officer information on screen K1E, where the Form 1125-E officer section is completed for all shareholders and officers as applicable. The 1120-S screen list, meanwhile, labels screen E as Officer Information, and the 1120 article points to screen E.
In practice: look for the Form 1125-E officer information section, check both screens in your version, and enter the detail where you find it. The compensation totals carry to page 1 line 7 from wherever they are entered.
The override that leaves the form behind
The compensation figure on page 1 can be entered directly, and doing so overrides the calculation from the officer screen. The important detail is what it does not change: the override adjusts the 1120-S, not Form 1125-E.
So page 1 can say one thing while the officer detail says another, and the mismatch is visible on the face of the return. Enter the detail and let the total compute.
When the form prints
Drake does not produce Form 1125-E automatically unless it is required, which means total receipts, line 1a plus lines 4 through 10 on an 1120-S, reaching $500,000. Below that, PRNT has Force-print Form 1125-E, Officer Information under Items to Print.
Forcing it is often worth doing. The percentage of time devoted column is the part of the return that supports the compensation figure, and having it on the file copy is useful later.
The underlying question
The data entry is five minutes. The judgment is whether the compensation is reasonable for the work performed, which is the most commonly adjusted item on a small S corporation return.
Zero officer compensation with substantial distributions is the pattern that gets looked at. If the shareholder works in the business, the fix is payroll rather than a different screen, and it is a conversation to have before filing.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | Page 1 line 7, with Form 1125-E required at total receipts of $500,000 or more |
| Form 1120 | Page 1 line 12, with Form 1125-E |
Common questions
What screen is officer compensation in Drake Tax?
Drake 1120-S guidance puts the Form 1125-E officer information on screen K1E, while the 1120-S screen list labels screen E as Officer Information and the 1120 instructions use screen E. Look for the Form 1125-E officer section and check both in your version; the totals carry to page 1 line 7 either way.
Why is Form 1125-E not printing?
Because it is not required. Drake produces it when total receipts reach $500,000. To print it anyway, select Force-print Form 1125-E, Officer Information on the PRNT screen under Items to Print.
What happens if I override officer compensation on page 1?
The override changes Form 1120-S page 1 but not Form 1125-E, so the two can disagree on the same return. Entering the per officer detail and letting the total calculate avoids that.
Does officer compensation go in salaries and wages?
No. It has its own line, page 1 line 7 on an 1120-S and line 12 on an 1120, and the detail goes on Form 1125-E. Non officer payroll belongs in salaries and wages.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 17, 2026.