Are owners draws on an incorporated company taxable by 1099? They do not draw a salary

Are owners draws on an incorporated company taxable? They do not receive payroll, 1099?

You pay taxes on the draw on your personal 1040. You should be on the company payroll if you are incorporated.

Yes, the draw IS taxable.

A draw is a paycheck, they may not be trying to call it one, but that is what it is.
They need to sit down with the accountant that is doing the taxes and set this up properly as a salary so that proper taxes are paid on it.