35 Miss. Code R. § 3-08-03-112.03
If a composite return is filed, the S corporation return is completed like any other S corporation return, but an additional schedule is attached listing the shareholder's identification or social security number and the shareholder's distribution that is to be included in the composite return. The S corporation then pays the tax on this income at the regular corporate rate. If the S corporation wants a deduction for the individual's personal exemptions and standard deductions, then instead of paying tax on the corporate return, the composite return income is reported on one nonresident individual return under the S corporations name and identification number. On this return, the corporation is allowed to deduct 10% of the adjusted gross income of the nonresident individuals reported on this return up to a maximum of $5,000 per composite return.
35 Miss. Code. R. § 3-08-03-112.03