S-Corporation · Shareholder-Employee

What's a reasonable salary for the work you do?

Owner-employees of an S-corp must pay themselves reasonable wages before taking distributions. Price out the jobs you actually perform — the cost or “many-hats” method — and see a defensible figure, the ratios an examiner watches, and how your distributions line up.

1

Company & owner

Optional — labels your printout
2

Financials for the year

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3

Your roles — the “many hats”

Hours × market wage
Role / function Market wage
reference		 Hours / yr Wage / hr Annual value Share
Total reasonable compensation 0 $0

Reference wages are illustrative. Verify against current BLS OEWS data or a salary survey for your area and role.

Not tax advice. This calculator is an estimating and documentation aid. Reasonable compensation depends on your specific facts and the IRS may view them differently. Confirm the result with a qualified CPA or tax advisor before filing, and keep records supporting each figure.
Built from the cost (“many-hats”) approach favored in IRS examinations and Tax Court. Replace this line with your firm name and contact. · Print this analysis
Reasonable salary$0