Free tool
S Corp Reasonable Salary Estimator
See what people in your line of work earn, using public wage data, before you talk salary with your CPA.
At a glance
Free, no email needed
Public BLS wage data, May 2025
Up to 3 roles, weighted by your time
Your CPA sets your salary
Estimator
Estimate a market wage range for the work you do
Pick the work you do most, then add up to two other roles and the share of your time each one takes. The range updates as you go.
Reading the result
What the range tells you, and what it does not
The range shows what employees doing similar work were paid in May 2025, nationally. What comparable businesses pay for similar services is one of the factors the IRS lists for reasonable compensation. It is not the only one, and the IRS does not give a percentage or a formula to use.
Bring the range to your CPA, along with notes on your duties, your hours and your experience. Your CPA sets the salary. Once it is set, it runs through payroll every pay period.
The IRS factors
The factors the IRS lists for reasonable compensation
The IRS says an S corporation must pay a shareholder-employee reasonable compensation for services before taking non-wage distributions. It lists these factors:
After the salary is set
Then the salary has to run through payroll
On our S corp payroll package, a payroll team registers your state tax accounts, runs your salary every month, makes every tax deposit, files the quarterly returns and issues your W-2. It is $149 a month, flat, and you keep your CPA.
Related
More for S corp owners
Salary estimator questions
Is this estimate my reasonable salary?
No. It shows what employees doing similar work earned, using public wage data. Your CPA sets your salary, using the factors the IRS lists.
Where do the numbers come from?
From the Bureau of Labor Statistics Occupational Employment and Wage Statistics survey, May 2025 national estimates. For each occupation we show the 25th percentile, the median and the 75th percentile annual wage.
Why can I pick more than one role?
Many owners split the week, for example between client work and running the business. The IRS says administrative work done for the business counts as services too. The estimator weights each role's wages by the share of time you give it.
Does the estimator save what I enter?
No. It runs in your browser, and nothing you enter is sent to us.
What happens after my CPA sets the salary?
The salary runs through payroll every pay period, with tax deposits, quarterly payroll returns and a W-2 at year end. Our S corp payroll package does all of that for $149 a month, flat.
Next step
Have your salary figure? We run the payroll.
Bring the salary your CPA sets, your EIN letter and your S election acceptance. A payroll team handles the rest.
