Benefits of An Annual Reasonable Comp Report

  • Legally Defensible Report: protection in case of IRS audits or challenges.
  • Exact W-2 Salary Figure: the minimum you must pay yourself to stay compliant.
  • Distribution Guidance: clarity on dividend distributions.
  • Audit-Ready Documents: a report you can hand directly to an auditor.
  • Compliance Peace of Mind: you'll know your payroll is in line with IRS rules.
  • Defense Against Penalties: helps you avoid costly back taxes, fines and interest.
  • Court-Tested Support: documentation that can be used for legal defenses.
  • Tax-Savings Strategy: balance wages vs distributions to minimize taxes.
  • Annual Planning Tool: map your salary and distributions for 2025 and beyond.
  • Business Valuation Support: adds credibility when valuing your S-Corp.
  • IRS Approved Methods: built IRS approved methods.
  • Retirement Contribution Clarity: accurate wage base for 401k, SEP, and IRA plans.
  • Workers' Comp & Insurance: ability to properly classify owner's pay.
  • Shareholder Transparency: clear documentation for co-owners and partners.
  • Bank and Lender Credibility: strengthens case for loans, credit or financing.
  • Boosts After-Tax Income: maximize distributions that are taxed at lower rates.