S-Corp Reasonable Compensation
Stop guessing your S-corp salary.If you run an S-corp, the salary you pay yourself is the one number the IRS actually checks. Set it too low and they recharacterize your distributions as wages — with back payroll tax, penalties, and interest. Set it too high and you hand over payroll tax you never owed. This Blueprint shows you how to find the defensible number in the middle and document it so it holds, and it comes with an Excel tool that builds your salary band on your own figures.WHO THIS IS FOR· S-corp owners setting their own salary for the first time· Owners who picked a number years ago and never checked whether it is defensible· Sole proprietors weighing an S-corp election who want to see the real saving· Anyone who has heard “pay yourself 60%” and wants to know what is behind the ruleWHAT'S INSIDEThe ebook — a 23-page, plain-English Blueprint (2026 edition) with six strategies:· Why the rule exists — the S-corp bargain, and why a low salary is the #1 audit trigger· What “reasonable” means — the factors the IRS weighs, and the one plain-English test· Three ways to set the number — the professional methods, and the percentage myth to avoid· The saving the salary protects — the payroll-tax math and your break-even· Running it and documenting it — real payroll and the file that ends an exam quietly· Special situations and traps — outside W-2s, low-profit years, and the too-high salaryThe Excel tool — Reasonable Comp Builder. Enter your profit and comparable market pay and it returns your defensible salary band, an audit-risk read on your proposed number, and the payroll-tax saving the salary protects — all on the 2026 figures cited in the book.WHAT YOU'LL WALK AWAY ABLE TO DO· Set a salary that sits inside a defensible market band — and know why it holds· See the exact payroll-tax saving your salary protects, and your break-even· Build the contemporaneous file that closes an IRS exam quietly· Spot the traps — too-low, too-high, outside W-2, low-profit years — before they cost you· Run your own numbers every year instead of paying for the same advice twiceFORMAT & DELIVERYInstant download. PDF ebook + Excel tool (.xlsx). Lifetime access and free updates.SAVE MORE WITH THE PACKThis title is part of the Small Business Owner Pack — bundled at a steep discount ($389). Or get every Tax Confident guide with the All-Access Pass ($699).FAQIs this current? Yes — it uses 2026 figures, including the $184,500 Social Security wage base and current FICA rates.Do I need special software? Any spreadsheet app that opens .xlsx (Excel, Google Sheets, Numbers). Just fill in the light-blue cells.Is this tax advice? No. It is educational and makes you a sharp, informed client. It does not replace your own preparer.I am not an S-corp yet — is this still useful? Yes. The S-Corp Savings tab shows the real payroll-tax saving and your break-even.Refunds? If it is not what you expected, reach out at hello@taxconfident.co. Disclaimer: This product is for educational purposes only and does not constitute tax, legal, or financial advice. Tax rules and thresholds change — consult a qualified tax professional regarding your specific situation.taxconfident.gumroad.com · hello@taxconfident.co
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