First, I cannot answer the question in regards to California. Generally speaking though, the election to be a "S" Corporation, is at the Federal Level.
At the Federal level, there is no requirement for employees, per se. However, if an owner, takes money out of an S corporation, and that owner performs work for the corporation, then the question becomes is the money taken out salary/wages, or a distribution? The Federal Government will and has made cases out of owners/officers that don't take a salary/wage, but do take distributions, cases that these are actually wages.
However, for there to be an issue, money has to be taken out of the corporation by the owner/officer.
I do not know about California...but most states follow the federal rules guidelines.
The Form 3554 is a form for claiming credit on California taxes in regards to wages/salaries. It does not effect Federal filing.
Perhaps someone else can speak to California rules.
**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**
