For S-corporation shareholder-employees
Reasonable compensation you can defend.
A rigorous, documentation-first calculator that turns an owner's actual duties, hours, and market comparables into a defensible compensation range — with the memo to back it up.
Built for CPA firms and advisory teams.
Defensible methodology
Facts-and-circumstances analysis aligned with IRS factors and court reasoning. No 50/50 or any unsupported shortcut rule — ever.
“Many hats” role analysis
Decompose the owner's work into real functional roles, price each against benchmark occupations, and weight by time actually spent.
Audit-ready reports
Export a polished PDF or Word memo with the full range, rationale, sensitivity drivers, and a complete audit trail of every input.
Confidence scoring
Every result carries a 0–100 confidence score based on data completeness, benchmark quality, consistency, and documentation.
How it works
Run the interview
A guided, branching intake captures the entity, the owner's roles and hours, financials, and revenue attribution — flagging estimates vs. hard data.
Benchmark & reconcile
Each role is priced against wage benchmarks, adjusted for the facts, then cross-checked against the business's economics into a defensible range.
Deliver the memo
Produce a client-ready or file-ready report with low/midpoint/high, methodology notes, and documentation guidance.
Designed to hold up under scrutiny
The IRS provides no single formula — reasonable compensation depends on duties, time and effort, experience, and what comparable businesses pay for similar services. This tool follows that standard: it computes only from facts you provide or confirm, applies bounded and disclosed adjustments, cross-checks against the business's economics, and records a complete audit trail. No unsupported percentage-of-income shortcuts.
Request access
Tell us a bit about your firm and we'll get you set up. Access is provisioned by our team.