S Corps. Single owner. How record salary you pay yourself on 1040. It that earned income.

This is my first year as an S Corp. I noticed that if you get paid profits from K1, when you record this on Schedule E, it comes in as ordinary income. I noticed that this disallows you for the EIC because the income is not earned income.

Here is my question. Let's say I do 60/40 between distributions and owner salary (from 1120s profits). I want to pay my salary as a year end bonus. Assume Profits are $100,000. $60K to distributions and 40K to Owner Salary. Does the K1 show $60K distributions and/or $40K salary? How do I show the $40K salary on my 1040? I think it goes under wages section. I think I send myself a w2. (would I also need to send a copy of the w2 to IRS)

And 1 last question, would I need to file estimated taxes each quarter and settle up at year end tax time?