Determine reasonable compensation with three risk tolerance levels
Important: S-Corporation owners who work in their business must pay themselves a "reasonable salary" before taking distributions. This calculator helps you find the optimal balance between tax savings and IRS compliance risk.
Important: This calculator provides estimates only and should not be considered tax advice. The IRS requires S-Corp owners to pay themselves reasonable compensation based on their role, industry standards, and other factors. Always consult with a qualified tax professional or CPA to determine the appropriate salary for your specific situation.