My partner and I formed an LLC taxed as an S-Corp.

We've been paying ourselves $5000 a month each.
I assumed that we could pay ourselves as we would pay a contractor, and report this on a 1099-MISC. Then when filing my personal tax return, I would pay the tax owed. Of course I already paid quarterly estimated taxes.

Is this indeed correct? Or do I need to be an employee and does my company have to withhold tax? Reason is, I just found out that I need to quarterly report wages paid.

Thank you for insight.

Peter