I think so since the S corp can never issue 1099S to its officers; An officer of a corp is always considered an employee and therefore should not receive a 1099 for services rendered. If the officer is drawing from the business account to compensate for services rendered, he or she needs to be put on the payroll. Adequate compensation for services rendered to an S corp is a hot-button issue with the IRS. Because compensation is subject to payroll taxes and draws are not, a shareholder can avoid taxes by receiving all draws. Your payroll tax liabilities you need to contact an Enrolled Agent or a CPA doing taxes in your local area for surer.