Reasonable Compensation Calculator

List the duties you perform as an S-Corp shareholder-employee, value each at average market pay, and allocate your time. The calculator blends them into a defensible reasonable compensation figure.

Report details

Company name

Shareholder name

Tax year

Business city

State

Report date

This S-Corp has more than one working shareholder.

Job duties

1 / 20

Duty 1

Average pay

Hours / week

Weeks / year

Proficiency level

Why this level? (optional)

Use the average pay for this kind of work in your area. Module 8 shows where to find it.

What does this salary save you?

Compare taking this salary as an S-Corp shareholder-employee against the same income as a sole proprietor.

S-Corp profit before your salaryFederal tax bracket

Salary used: $0. Run other scenarios in the S-Corp Stress Test

Enter your S-Corp profit and calculate a salary above to see the estimated savings.

Estimate only. Federal taxes at a flat bracket. Ignores state taxes, payroll and filing costs, and QBI income limits.

Save & return

Your work autosaves to this browser. Download a copy to keep it or update it next year.

Want a more precise number?

It can mean more savings, or more safety.

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