Officer Compensation and Form 1125-E in UltraTax CS
UltraTax CS prints Form 1125-E automatically when receipts reach $500,000, and the officer compensation total carries to page 1: line 12 on an 1120 and line 7 on an 1120-S. To print the form below the threshold, use Setup, 1120 Corporation, Federal tab, Other Return Options, Return Presentation tab, which also covers 1120-S clients.
- Setup
- 1120 Corporation
- Federal tab
- Other Return Options
- Return Presentation tab
| Trial balance account | UltraTax CS screen and field | Lands on |
|---|---|---|
| Officer compensation | Officer information for Form 1125-E | Page 1 line 12 (1120) or line 7 (1120-S) |
| Salaries and wages, non officer | Income and deductions screens | Page 1 salaries and wages line |
| Form 1125-E below $500,000 | Return Presentation tab checkbox | Prints the form anyway |
| Officer SSNs | Return Presentation tab truncation option | Last four digits only on Form 1125-E |
| Shareholder health insurance | Through payroll and the W-2 | Included in officer wages |
Skip manual tax codes. Get an UltraTax ready import file in minutes.
Try it freeOfficer Compensation and Form 1125-E in UltraTax CS 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 |
Finding the input screen
UltraTax organizes input by folder and screen rather than by numbered screens, and the fastest way to reach the input for a specific form is the Tax Subject Index: Help, Tax Subject Index, then the Forms tab, then double click the form. Searching Form 1125-E there takes you to the input for officer compensation in your version.
That technique is worth knowing generally. It beats hunting through folders for any form whose input location you are unsure of.
When the form prints, and how to force it
UltraTax prints Form 1125-E automatically once receipts reach $500,000. Below that it does not.
To print it anyway, the setting is Setup, 1120 Corporation, Federal tab, Other Return Options, Return Presentation tab. The same tab has an option to truncate officer SSNs on Form 1125-E so only the last four digits show, and the settings there apply to 1120-S clients as well as C corporations.
Forcing the form is usually worth it on a closely held S corporation. The percentage of time devoted column is the support for the compensation figure, and having it in the file copy is useful when the question comes up a year later.
What belongs on the officer line
In: gross W-2 wages to officers, including bonuses.
Out:
- Distributions, which are equity and belong on Screen Ms
- Personal expenses paid by the company, which are distributions or a constructive dividend
- Non officer payroll, which goes in salaries and wages
- Guaranteed payments on a 1065, which are not officer compensation at all
Health insurance for a more than 2% S corporation shareholder is the special case: included in W-2 wages for income tax purposes, not subject to Social Security and Medicare, and deducted by the shareholder personally. It belongs in the wage figure through payroll rather than in an insurance expense account.
The question behind the data entry
Entering the number takes a minute. Whether the number is defensible is the part that matters, and on an 1120-S it is the most commonly adjusted item on the return.
Zero officer compensation alongside substantial distributions is the pattern that draws attention. If the shareholder works in the business, the answer is payroll rather than a different field.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120 | Page 1 line 12, with Form 1125-E detail |
| Form 1120S | Page 1 line 7, with Form 1125-E at receipts of $500,000 or more |
Common questions
Where is officer compensation entered in UltraTax CS?
With the officer information that feeds Form 1125-E, and the total carries to page 1 line 12 on an 1120 or line 7 on an 1120-S. The quickest way to the right screen in your version is Help, Tax Subject Index, Forms tab, then double click Form 1125-E.
How do I print Form 1125-E when receipts are under $500,000?
Setup, 1120 Corporation, Federal tab, Other Return Options, Return Presentation tab has a checkbox to print Form 1125-E below the threshold. The settings on that tab apply to 1120-S clients too.
Can I hide officer Social Security numbers on Form 1125-E?
Yes. The Return Presentation tab has an option to truncate the SSNs so only the last four digits appear on the form.
Does officer compensation include shareholder health insurance?
For a more than 2% S corporation shareholder, the premiums are included in W-2 wages for income tax purposes, are not subject to Social Security and Medicare, and are deducted by the shareholder personally. They belong in the wage figure through payroll, not in an insurance expense account.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 17, 2026.