Salary should be based on the going rate of compensation for the type of work done and as a corporate officer. I advise you to proceed cautiously in this area as the IRS often raises an audit issue of whether a corporate officer/shareholder takes adequate compensation. An arbitrary number of split of funds taken out is not necessarily defense-able.
As to taxation, salary is deductible by the S corporation, and is income to the person receiving it. Subject to FICA and Fed W/H. The following link is a good discussion on the IRS website about S Corporation employees/officers/shareholders and disbursement of funds.
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-a...
A distribution is generally non-taxable. However, it is subject to the ordering rules. If the distribution exceeds the amounts available in the ordering rules, it becomes taxable. Please review the instructions for Form 1120S, and in particular, page 41 for the distribution rules.
https://www.irs.gov/pub/irs-pdf/i1120s.pdf
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
