Free tool — no sign-up required
Estimate Your Reasonable Compensation
The IRS requires S-corp owner-employees to pay themselves a salary comparable to what you’d pay someone else to do your job. Use this calculator to estimate an IRS-defensible compensation range, your potential self-employment tax savings, and your audit risk profile — based on real BLS wage data.
Not sure how this works? Read the guide
Your details
Fill in your details and click Calculate to see your estimated reasonable compensation range.
Also read
S-Corp Reasonable Compensation: What the IRS Actually Requires and How to Set Your Salary
The IRS requires S-corp owners to pay themselves a 'reasonable salary' — and has audit procedures to enforce it. What factors the IRS considers, how auditors typically approach S-corp compensation cases, and a practical method for setting a defensible number.
Read S-corp planningHow to Actually Pay Yourself From an S-Corp
S-corp owners get paid two ways: W-2 salary through payroll, and distributions from the business account. What each one is, how to set them up, and what the IRS expects.
Read