Order your Reasonable Compensation Analysis and Report!
Best Practices for S-Corp Owners to Reduce Payroll Tax
Determine Your IRS-Ready Reasonable Compensation today by putting an accurate report on file. The cost for our Study is $500.
This topic is relevant for setting an S-Corporation’s owner’s salary: Saving on payroll tax is a main reason for having an S-Corp.
The key is that the salary you set is reasonable (not too low given the context), but not any higher than necessary.
You pay 15.3% of payroll tax on every dollar of salary, so there is big savings potential.
Write to Tax@S-CorpTax.com, or call (858) 779-4125 if you have questions.
…or just fill out the below form to start the order, and pay later:
Order Your Reasonable Compensation Report
Why Every S-Corp Owner Needs a Reasonable Comp Study
IRS Compliance Is Non-Negotiable
The tax code mandates that S-Corp shareholder-employees pay themselves reasonable compensation. Too little, and the IRS reclassifies distributions as wages—triggering back payroll taxes, interest, and penalties. Too much, and you overpay employment taxes unnecessarily.Avoid Costly IRS Challenges
Without a documented basis for your salary calculation, you’re leaving yourself exposed. IRS case law (e.g., Watson, Radtke, Spicer) has consistently upheld penalties where compensation decisions lacked analytical support. Your report provides that defense.Maximize Your Tax Efficiency — Every Year
Set your salary once and keep it defensible. A properly documented amount saves thousands in taxes and exam headaches annually.
What This Report Delivers
Dual-Approach Analysis
Cost (Task-Based): Itemizes your functions, hours worked, and market pay rates.
Market Benchmarking: Compares your role to similar jobs in similar businesses.
Reconciled Recommendation
A final salary figure derived from weighted results of both methods, with sensitivity testing.IRS Audit-Ready Documentation
Methodology, authoritative sources (like BLS data), calculations, and disclaimers — all filed and signed for compliance demands.
What Our Report Offers
Flat-Rate Clarity $500 per report—no subscriptions, hidden fees, or surprises.
EA-Prepared, Audit-Defensible Format Not a template generator — a professional analysis created by licensed tax professionals.
IRS-Aligned Methodology Reflects the IRS Job Aid and accepted court precedent — not web-scraped “ballpark” figures.
IRS-Ready Documentation A polished report you can store in your file for immediate audit response.
Why It Matters to Your Bottom Line
A $500 investment in a Reasonable Compensation Report typically yields hundreds to thousands in savings by avoiding:
Reclassified wages and associated taxes
IRS penalties and interest
Time and cost of audit defense
Plus, it positions your S-Corp for cleaner compliance and smoother future planning.
Ready to Secure Your Compliance?
Order your IRS-ready Reasonable Compensation Report today for $500. Once we receive your role details and hours, we’ll handle the rest — delivering a report you can use immediately if the IRS comes calling.
Contact us now to get started or compare with other providers. Keep it defensible, keep it simple, and most importantly, keep it right.
Your 8-page report will pinpoint the exact recommended Reasonable Salary, and will substantiate how it was determined.
It’s all you need to save a large amount of taxes and have your documentation in order:
Tip: Owners who work on their business part-time can usually demonstrate through our report that a lower salary is reasonable. Big savings every year! Tax on salary is 15.3%.
See here a sample page from our report.
We are an EA firm… Enrolled Agents directly licensed by the Internal Revenue Service.
You can order your report with confidence, and we are also available to speak to you about additional questions and details as needed.
You can reach us at tax@S-CorpTax.com and (858) 779-4125.
Get your Reasonable Compensation Study without delay!
