salary from an S-corp is taxed just like wages from any other employer - ordinary income. The S-corp pays social security and medicare taxes on these wages as do you through a deduction from your salary. Payroll tax returns must be filed by the S-corp. State law will dictate if they are subject to unemployment taxes and whether it is required to carry workers' compensation insurance. Since you seem new to this, it might be a good idea to meet with a tax pro to review these things. Distributions are not taxed, they reduce your tax basis, unless they result in a negative tax basis. You must include form 7203 with your 1040 if there is a loss or there are distributions. Most numbers must be entered manually as they do not carry from the K-1
