The owner of an S-corporation must ALWAYS be paid a salary that is considered fair compensation for work performed. This salary is subject to state and federal income tax withholding, social security and medicare tax, and any other state or federal requirements (such as worker's comp and unemployment). (I suppose if you have several other employees and the owner is only an investor, then the owner does not need a salary, but then the non-salaried owner can't get tuition or other employee benefits.)
Taking the business profits as dividend or capital gains income without paying employment taxes is the number 1 adverse audit finding for small businesses.
You can pay the salary weekly or monthly or even just once a year, but it must be fair compensation for the work actually performed during the year, similar to what you would pay an employee for the same work, and not just a token amount to "look good" for the IRS. And the S-corp must file the proper W-2 and W-3 and form 941 or 944 plus the corresponding state forms for your state.
