A corporation determines who is an officer under the laws of the state/country where it is incorporated. Generally, officers would include those who are principal executive or financial officers. If total receipts from page 1 of the return are $500,000 or more, certain entities use Schedule 1125-E to provide a detailed report of the deduction for officer compensation. The total deductible compensation reported on 1125-E would generally include each officer’s salaries, commissions, bonuses, taxable fringe benefits, etc.
Salaries and wages are amounts paid or incurred to employees (other than officers) during the tax year.