Is Your Client's S-Corp Salary at Risk?

Enter 4 numbers from their 1120-S. Get an instant risk signal.

No client names. No identifying info. Just the numbers.

From Form 1120-S

All fields reference the S-corporation tax return.

Line 1a — Gross Receipts or Sales

Line 7 — Compensation of Officers

Schedule B — Number of Officers

Line 21 — Ordinary Business Income (Loss)

Enter negative numbers for losses (e.g. -50,000)

Important Disclaimers

This tool provides general guidance only and does not constitute tax, legal, or financial advice.

Reasonable compensation depends on many factors including officer duties, experience, industry, geographic location, and the company's financial position. This simplified calculator uses revenue-based benchmarks and distribution ratios and cannot assess all relevant factors.

For a defensible, audit-ready reasonable compensation analysis backed by BLS OEWS occupational data, try SafeRatio.

Is Your Client's S-Corp Salary at Risk?

From Form 1120-S

Salary vs. Distributions Split

Risk Signal Breakdown

Important Disclaimers