Partnerships use K-1 forms to distribute income to the partners.

S-corps issue W-2s to distribute income to the owner.

Partnerships can deduct salaries and wages as a component of ordinary income--they just cannot deduct their own salaries. When paying themselves, they either get guaranteed payments which reduces the partnerships ordinary income or distribution which has not effect upon partnership ordinary income.

S-Corps can deduct owner salaries which will reduce ordinary income. However, salaries will be reported on Form W-2 and be taxable to the shareholder--just like any other employee. Income is not solely distributed to owner's via W-2, S-corps can make distributions to shareholders and to the extent that the distribution does not exceed their basis, it is a tax-free transfer. Once basis is exceed, long-term capital gain treatment applies.