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Defensible S-corp compensation — documented.

Audit-ready reasonable salary analysis for CPAs and advisors.

IRC §162-aligned · Built for CPAs and advisors · Exhibitor at NAEA Tax Summit 2026

SafeRatio
S

Compensation analysis hub

Analyses

24

Reports

24

Out of range

2

Recent Reports

Acme Corp · Sarah Chen

Jan 15

In Range

Baker LLC · Mike Jones

Jan 12

Out of Range

Clark & Co · Jane Smith

Jan 8

In Range

The old way doesn't hold up.

Leading to audit risk, weak documentation, and manual work.

Guesswork

No formula, no defensible logic.

Generic surveys

One-size-fits-all benchmarks.

Static PDFs

No context, no audit trail.

Inconsistent

Different method each time.

Audit risk · Weak docs · Manual work

SafeRatio turns judgment into documented analysis.

Role, duties, financials, and market data → defensible range, confidence score, audit-ready report.

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Back to Run Analysis

Edit Inputs for Sarah Chen

Update shareholder information. 3 of 6 tasks completed.

Sarah Chen

sarah@acme.com

3/6

Three IRS-recognized approaches

Multi-approach reasonable compensation analysis

SafeRatio uses all three IRS-recognized approaches to determine defensible reasonable compensation, giving you the strongest possible audit position.

Cost Approach

Many Hats Method

What would it cost to replace this shareholder? We break down every role and duty, match each to BLS wage data, and blend into a defensible salary figure.

BLS OEWS wage data (800+ occupations)

Income Approach

Independent Investor Test

Would an investor accept the return after salary? We validate that the company still earns a reasonable return on equity using industry cost-of-capital benchmarks.

Damodaran / NYU Stern industry data
Coming soon

Market Approach

Industry Comparison

How does compensation compare across similar companies in the same industry and region? Direct comparison using industry-specific salary survey data.

Industry salary survey benchmarks

See the full analysis at a glance

Every analysis produces a defensible salary range, confidence score, and compliance flags — ready for your client file.

app.saferatio.com/advisor/.../analysis/results

Analysis Results — Sarah Chen

Peterson Dental Group, S.C. · Tax Year 2026

Recommended Salary

$118,400

0% Confidence

Current

$95,000

Gap

+$23,400

Feasible

$112,000

Salary Range

$72K$118K$148K

Based on BLS OEWS data · SOC 11-3031

Salary within defensible range — supported by three independent approaches
Distribution-to-salary ratio above 2:1 — review recommended
Documentation sufficient for audit defense — PDF report ready

From analysis to action

Every report includes a defensible salary recommendation, methodology documentation, and a corrective action plan.

Role Scope

Duties, time %, leadership

Financial Capacity

Profit, payroll ratio

Market Benchmark

Percentile vs industry

Audit Defense

IRS-ready PDF generated

Download a sample report (PDF)

SafeRatio Page 1 of 3

Compensation Analysis

Peterson Dental Group, S.C. · Sarah Chen

Recommended Salary

$118,400

In Range

Current

$95,000

Feasible

$112,000

Confidence

87%

SafeRatio Page 2 of 3

Market Compensation Benchmarks

BLS OEWS Data · SOC 11-3031 · National

Cost Approach$122,800
Income Approach$118,400
Blended Recommendation$118,400

Percentile: 62nd among Financial Managers in the U.S.

SafeRatio Page 3 of 3

Corrective Action Plan

Recommended adjustments for compliance

Increase salary from $95,000 to $118,400 effective next payroll period

Review distribution schedule — current 2.4:1 ratio exceeds recommended threshold

File updated Form 1120-S with adjusted officer compensation on Line 7

Schedule annual re-analysis for Q1 2027

Built for professionals who need defensible answers

Purpose-built for advisors who need documentation that holds up.

Most common

CPAs

Deliver a salary you can stand behind

Audit-ready rationale included

Tax Advisors

Turn compliance into a paid service

Audit-ready rationale included

For firms

Accounting Firms

Standardize reasonable comp

Audit-ready rationale included

S-Corp Advisors

Protect distributions

Audit-ready rationale included

More than a static report

See the difference between a one-time PDF and a living practice tool.

Other tools
CompReport_2026.pdf
One-time, no updates
Opaque methodology
No corrective actions
No client portal
SafeRatio

Your Clients

SC

Sarah Chen

Peterson Dental Group

In Range
MJ

Mike Jones

Baker LLC

Review
JS

Jane Smith

Clark & Co

In Range
← Back | Sarah Chen

Recommended Salary

$118,400

Confidence

87%

Analysis History

Mar 2026$118,400In Range
Jan 2026$112,000In Range
Sep 2025$95,000Under
Re-analyze anytime with updated data
Transparent methodology with audit trail
Corrective action plan + PDF export
Client portal included

Your next S-corp return deserves a defensible salary.

CPA-built
IRC §162 aligned
Real client tax planning

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