USA S Corp Distribution Taxes

[panzeriti]

I am a relatively new small business owner and I would like to pay out a distribution to myself from last years profits. I already pay myself a reasonable salary, so I assume this is ok. I handle the payroll, but not quite sure how to handle a distribution, as it will be my first time.

How do I calculate how much tax I should withhold from the distribution amount? Do I calculate it based on my gross income for the year, including the distribution?
Do I need to add this info to my 941 form for the quarter?
When paying the taxes via EFTPS, the system asks for a form number; what do I input for a distribution?

 

[The Finance Writer]

No tax is owed on profit distributions to S corporation shareholders. You already owe tax on the profit -- whether it is distributed or not. Pay the tax on S corp profit by increasing your withholding on wages or by using Form 1040-ES.