S-Corp Reasonable Compensation Reports — Stop guessing what reasonable looks like.
WageProof gives CPAs, EAs, and tax advisors white-labeled, audit-ready reasonable compensation reports for their S-corp clients — every number built on Bureau of Labor Statistics wage data and the IRS’s three approaches, in about 15 minutes. Owners can run their own, too.
What is reasonable compensation?
Reasonable compensation is the salary the IRS requires S-Corporation owner-employees to pay themselves before taking distributions. The IRS evaluates whether that salary is reasonable using nine factors from IRS Fact Sheet FS-2008-25. The IRS Reasonable Compensation Job Aid shows how examiners are trained to evaluate reasonable compensation. WageProof generates defensible reports using three IRS-recognized approaches, drawing on Bureau of Labor Statistics data covering 7,000+ job titles across 500+ U.S. metro and nonmetro areas. Every figure traces to a published source.
Use our reasonable compensation calculator to estimate a salary range, or read the full reasonable compensation guide for a deeper look at how the IRS evaluates S-corp owner salaries.
Cost Approach
Build-up from BLS task-level wages. Every duty is priced separately, then weighted by time spent.
Market Approach
Comparable executive compensation for the owner’s primary occupation in their geographic market.
Income Approach
Independent Investor Test — compensation derived from company financials and a target investor return. Professional accounts only.
Who is WageProof for?
Built for the CPAs, EAs, and tax advisors who run reasonable-comp reports for their S-corp clients — and simple enough for owners setting their own salary. Either way, about 15 minutes.
I’m a CPA, EA, or tax advisor
Generate white-labeled, client-ready reasonable compensation reports in minutes. Send your client a questionnaire or fill it out yourself — all three IRS-recognized approaches, documented and ready if the IRS comes asking.
Run a client reportI’m an S-Corp Owner
Setting your own salary? Find out what the IRS considers reasonable for what you actually do, and get a defensible number from federal wage data.
Start your reportHow does WageProof work?
Three steps. About 15 minutes.
- Step 1
Capture the role
Send your client a short questionnaire, or fill it out yourself — which tasks they perform, from bookkeeping to sales to managing employees, and their proficiency at each.
- Step 2
We price each task
Each task is matched to BLS wage data for the right metro area and experience level. The math is documented and every number traces to a published source.
- Step 3
Download the report
Get a white-labeled PDF with methodology documentation, source citations, and a board resolution template — ready for the tax return or an IRS audit.
Built to be your firm’s work product
Reasonable-comp documentation is advisory work you can systematize, brand, and bill for. WageProof gives every S-corp client a defensible number — with your firm’s name on the report, not ours.
One consistent methodology across your whole book, so the answer doesn’t change depending on who ran it. White-label branding is included on the Professional and Firm plans — with no enterprise contract or per-seat licensing to get there. See pricing
BLS data, not a black box
We use the same Bureau of Labor Statistics wage data the IRS references. Every number traces to a published source — no proprietary database to defend.
White-labeled to your firm
Upload your logo and colors once. Every report carries your brand, so clients see your firm’s expertise — not our software. Included on the Professional and Firm plans.
Protects your client — and you
When the IRS questions a client’s salary, a documented report helps protect the client from reclassification — and the preparer from §6694 penalty exposure.
What’s in a WageProof report?
A simplified example of the task-by-task breakdown. Each report reflects the client’s actual role, location, and experience.
Each task is priced using BLS wage data for the client’s metro area and experience level.
Based on 4 tasks, 2,080 hours, San Francisco-Oakland-Hayward MSA
Common questions
The calculation approaches, data sources, and documentation format are drawn directly from the IRS Reasonable Compensation Job Aid — the same guidance the IRS's own valuation professionals use. Every wage figure cites the BLS occupation code, geographic area, and data year, so an auditor can independently verify every number. The full methodology is published on this site for anyone to review. We always recommend reviewing the report with your CPA, EA, or tax advisor.
Yes. There's a full sample report on the site, no email required. Same format, same data sources, same methodology documentation you'd get in yours.
See the sample report →It's the salary an S-corp must pay its owner-employees for the work they perform. The IRS requires it to be comparable to what someone in a similar role would earn in the open market. Getting it wrong can trigger penalties, back taxes, and interest.
All wage data comes from the Bureau of Labor Statistics Occupational Employment and Wage Statistics program. We use data at the metropolitan area level. No proprietary databases, no unverifiable adjustments.
Read the full methodology →About 15 minutes. You walk through a short questionnaire describing the owner's role and how they spend their time. The report generates immediately after. Download the PDF whenever you need it. Finalized reports never expire; drafts are automatically finalized after 14 days.
Generate your first client report
White-labeled to your firm, backed by BLS data, in about 15 minutes.
Start Your Report