Reasonable Compensation
S-Corp Reasonable Salary Calculator
Estimate a reasonable S-corp salary from five inputs. What the estimate means, what it cannot see, and where a full Reasonable Compensation Study goes further.
Bobby Huang8 min read
Blog
Notes on reasonable compensation studies: evidence, calculation, review, and the workpapers a firm keeps.
Workpaper Evidence
The Source-Citation Habit That Actually Survives an IRS Notice
Most workpapers show a number, not where it came from. The citation habit that turns a CP2000 notice into a five-minute reply, not a three-week scramble.
Bobby Huang4 min readReasonable Compensation
What a Reasonable Compensation Study Is (and What Belongs in One)
What a Reasonable Compensation Study contains, why each part matters to a Reviewer and an examiner, and why your firm should own the workpapers for good.
Bobby Huang10 min readReasonable Compensation
Reasonable Comp Audit Defense: Surviving IRS Reclassification
What happens when the IRS reclassifies S-corp distributions as wages, what it costs, and the contemporaneous evidence that makes a salary defensible.
Bobby Huang15 min readReasonable Compensation
S-Corp Salary vs. Distribution: How the Split Works (and the 60/40 Rule Myth)
How S-corp salary and distributions actually split, why the 60/40 rule is a myth with no IRS basis, and what really sets a defensible reasonable salary.
Bobby Huang16 min readReasonable Compensation
How to Determine Reasonable Compensation for an S-Corp Shareholder
The step-by-step method firms use to set an S-corp shareholder salary: the cost, market, and income approaches, wage evidence, and documented judgment.
Bobby Huang17 min read