Here's the info, then: "21 out of 65 was used to make personal expenses from business account"

As long as $44k can be shown to be reasonable wage, that is Payroll. The other is Distribution; nothing here is Income through the K1, because distributions are not Expense or Income. Nothing is 1099 info from your own S Corp.

It's not too late to fix this for 2017; it's just going to be a bit expensive.

What about 2018 and 2019?