1120s : Can the shareholder be paid via W-2 or 1099-Misc for management work?

Not possible

SCorp Owner / Managers are required to be paid a reasonable compensation, paid through W2 wages.  This does not preclude them from also receiving payments for contract work that is un-related to the  normal business operations (SCorp is a plumbing business, Owner also does IT support, owner provides IT support and to SCorp).  Related to 199A, both the W2 and 1099 work is a deduction to arrive at QBI and the 1099 work, it has been suggested, cannot be included in the indivduals QBI figures (IE deducted from his Schedule C QBI figure).

I would look to the proper classification as an employee v. independent contract.  Here is an IRS resource for making the determination: https://www.irs.gov/pub/irs-pdf/p1779.pdf

If the shareholder has a separate management company that manages the corporation, then a 1099-MISC would be issued.  1099-MISC would go to a legal entity or if a sole proprietorship then to the individual.

Thank you,

Mike D'Avolio

Intuit