S corp shareholder take w2 and 1099

In an S corp, there is no choice for "taking" on the k-1. His share of the income is reported on the k-1 and he reports the income on Sch. E, page 2 of the 1040. If the corp wants to distribute the cash needed to pay the income tax on the shares of income reported by all the s/h's, they can do it, but they don't have to distribute anything.

I included the "rare cases" comment for some employees who might also be able to be treated as contractors, but that is for employees like secretaries who might also clean the offices after-hours as an independent business. I figured that if I said "never" I would get comments back from some other posters. S/H-employees cannot be contractors for their own S corps.

Please explain what one of the s/h's means by " he does not want to take rest on k1 but would like to take 1099." It does not make any sense to me. If he could take a 1099 income(but he can't), he would pay SE tax on it. As an S corp. s/h, he does not pay SE tax on his share of income nor on any distributions of AAA.

BTW, any distributions of AAA must be pro-rata. If one s/h wants more income, he must take wages, not more distributions, unless all s/h's take more distributions.