Pressure-test inputs
Run a base case and a conservative case. A decision that works only under perfect assumptions needs more diligence.
Free tax planning tool
S-Corp Comparable-Pay Scaler
Scale credible comparable-market evidence for time and geography, then document the broader facts a real compensation conclusion requires.
No account required Educational, not individualized advice
Comparable-pay evidence
Use a credible salary survey, recruiter report, or comparable job set for the work actually performed.
Time-and-geography scaled range
$95,192 to $138,462
87% of the user-supplied full-time comparable
Scenario midpoint
$116,827
A comparable-pay discussion point, not a salary conclusion or safe harbor
Pre-wage profit entered
$240,000
Context only; profit does not set reasonable compensation
Input readiness
3/3
The scaler inputs are internally complete.
This is not a reasonable-compensation opinion. Training, duties, responsibilities, receipt sources, non-shareholder employees, capital, distributions, benefits, compensation agreements, and payment history require separate review.
Review compensation and S-Corp setupEducational estimate, updated August 23, 2026. The IRS does not prescribe one percentage. This scaler only adjusts user-supplied comparables for time and geography; it cannot weigh all facts and circumstances or issue a compensation opinion.
How to use the result
Use the answer as a decision screen
The result is designed to expose the variables worth investigating, not to replace transaction documents, tax returns, or professional judgment.
Separate cash from tax
A tax benefit cannot rescue weak economics. Evaluate operating cash, financing, and tax effects separately.
Document before acting
Save the source documents and assumptions a CPA will need to validate the treatment.
Take the next planning step
Request a planning follow-up
The useful answer stays on the page. Share your contact information only if you want Taxstra to follow up about the planning questions this tool surfaced.
Frequently asked questions
These answers explain the model’s boundaries.
Does the IRS provide a safe salary percentage?
No. Reasonable compensation is a facts-and-circumstances question. Duties, experience, time, comparable pay, and the source of company receipts all matter.
Is the displayed range a salary opinion?
No. It scales the comparable-pay evidence you enter. The output is only as defensible as that evidence and the documented role.
Why ask about the source of receipts?
The IRS distinguishes receipts generated by the shareholder’s services from receipts generated by employees, capital, or equipment.