S-Corp Owner Tool

Cape Cod Reasonable Compensation Calculator

Find out if your S-Corp owner salary is IRS-defensible and how much you could be saving in payroll taxes.

For estimation only.

Industry salary benchmarks are sourced from BLS Occupational Employment Statistics and cross-referenced with RCReports methodology. The weighting model is based on published IRS reasonable compensation guidance. This is not tax advice, and results will vary based on your specific facts. Talk to us before setting your salary.

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Business Info
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Your Role
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Results

Business Information

Tell us about your S-Corp

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Your Role & Qualifications

Helps us assess the market value of your work in the business

Drag to adjust 40 hrs/week
Including education 10 years
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Estimated Reasonable Compensation Range
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Based on IRS reasonable compensation factors for your industry
Recommended Salary
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Midpoint of the range
Est. SE Tax Savings
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vs. sole prop / disregarded LLC
Salary as % of Profit
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IRS generally looks for 50%+

Current Salary vs. Recommended Range

Where your W-2 lands relative to what the IRS would expect

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How We Calculated This

Weighted factors based on IRS reasonable compensation methodology

Factor Weight Your Data Contribution

The 9 IRS Reasonable Compensation Factors

What the IRS looks at when auditing S-Corp owner salaries

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Duties & responsibilities What you actually do every day
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Time & effort devoted Hours worked and task complexity
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Training & experience Education, credentials, and expertise
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Contribution to company success Your role in building the business
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Comparable salaries paid What similar employees earn in your industry
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Company size & gross income Revenue and overall profitability
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Prior year compensation Consistency and pattern of pay history
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Salary vs. distributions Ratio of W-2 wages to S-Corp distributions
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Local economic conditions Cost of living and regional market rates

Want a defensible salary on record?

We help Cape Cod S-Corp owners establish and document reasonable compensation that holds up to IRS scrutiny — while legally minimizing payroll taxes.

Provided for educational purposes by Steven M. Ellard, CPA • Brewster & Chatham, MA.