does that mean if one of the members is "not" an employee that their portion of income distribution is taxed at the FICA 15.3% while the member who "is" an employee does not pay the 15.3% on the income distribution but instead only on the portion of their salary?
an S-corp does not generate self-employment income. so as an S-corp none of the owners pay SE tax on the income allocated to them. this is one way S-Corp taxation differs from an LLC/partnership. those that get a salary only pay 7.65 % of their salary for FICA/Medicare. the S-corp pays the other 7.65% for which it gets a tax deduction.
perhaps you should consult a tax pro to get educated on S-Corp operations. the salary payments require filing quarterly Federal 941s and if you have a state income tax withholding state taxes and filing state 941s (or equivalent). there can also be state unemployment taxes and there is a Federal unemployment tax filing - form 940. also it's likely that your state would require the owners who are paid a salary to be covered by workmen's compensation insurance. W-2s and W-3s would need to be filed. the frequency and method of payroll tax deposits are best discussed with the pro. These are just some possible requirements there can be others.
