No, as Opus 17 states, you must pay yourself a reasonable compensation and withhold appropriate payroll taxes if you perform services in your S-Corp that generate income. The amount reported as payroll must be at least 50% of the total amount you take out of the business (so distribution amounts cannot exceed reported gross salary or wages paid to you).
Per the IRS:
S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.
The best thing for you to do may be to amend your 1120S to show the correct amount of payroll based on your reasonable compensation determination and report the payroll and applicable taxes on Forms 941 and 940 even though the payroll returns will be filed late.
You may want to find a payroll/tax professional in your area to help you with this.
@lazizbekn
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