When the S-Corp pays you a salary, it has to withhold federal (and state if applicable) tax, social security tax and medicare tax. It has to deposit payroll tax to the IRS (and the state) and issue a form W-2. If it did not withhold taxes, it cannot issue you the W-2 showing tax withheld. You have to pay estimated tax on the estimated profit of the S-Corp (from form K-1).
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