Journal Entry for Manual Check

I'm at a loss and hope someone here can help me out. Here's the situation.

Company (S-Corp) pays an employee but they only do it for the purpose of calculating and paying the taxes. For example, employee gets paid $1,000. There is $150 in taxes. Their net check is $850. The employee never actually received the $850. How would you record that as a journal entry?

Why is he not getting the $850? Therein lies your answer.

Or related, where did the $850 go?

Non-owner employee? If so, how in the world are they otherwise earning wages?

If it is the less-than-ideal practice of an S-Corp owner "converting" distributions to wages, the offset is against distributions since no additional cash is received by owner(s)...

Non-owner employee? If so, how in the world are they otherwise earning wages?

If it is the less-than-ideal practice of an S-Corp owner "converting" distributions to wages, the offset is against distributions since no additional cash is received by owner(s)...

It’s a shareholder-employee and yes that makes sense. Thanks.