S-Corp Reasonable Compensation Reports — Stop guessing what reasonable looks like.
WageProof generates IRS-defensible reasonable compensation reports for S-corp owners. A 15-minute questionnaire produces a PDF backed by BLS wage data, matched to the role the owner actually performs. Documentation built for audit defense — for S-corp owners and the CPAs who advise them.
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 a 9-factor test rooted in case law and the IRS Reasonable Compensation Job Aid. WageProof generates IRS-defensible reports using three IRS-recognized approaches, drawing on Bureau of Labor Statistics data covering 7,000+ job titles across 500+ U.S. metropolitan and nonmetropolitan areas. Every figure traces to a public source.
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. CPA accounts only.
Who is WageProof for?
Whether you’re setting your own salary or advising a client, the process is the same — and takes about 15 minutes.
I’m an S-Corp Owner
Find out what the IRS considers a reasonable salary for what you actually do. Answer a few questions about your role, and we’ll calculate a data-supported number using federal wage data.
Start your reportI’m a CPA or Tax Advisor
Generate client-ready reasonable compensation reports in minutes. All three IRS-recognized approaches — documented and ready if the IRS comes asking.
Run a client reportHow does WageProof work?
Three steps. About 15 minutes.
- Step 1
Describe your role
Select the tasks you actually perform — from bookkeeping to sales to managing employees. Rate your proficiency at each one.
- Step 2
We price each task
Each task is matched to BLS wage data for your metro area and experience level. The math is documented and every number traces to a public source.
- Step 3
Download your report
Get a PDF with methodology documentation, source citations, and a board resolution template. Ready for your tax return or an IRS audit.
Reasonable compensation shouldn’t cost unreasonable money
Every S-Corp owner needs to pay themselves a reasonable salary. The IRS requires it. But figuring out what “reasonable” actually means has traditionally meant expensive consultants or opaque software.
We built this tool because we believe the answer should come from public, verifiable data — and it shouldn’t cost hundreds of dollars to get it.
BLS data, not a black box
We use the same Bureau of Labor Statistics wage data the IRS references. Every number is traceable to a public source.
Task-by-task precision
You’re not one job title — you’re a dozen. The report values each task independently, so your salary reflects what you actually do.
Transparent pricing
A single report is $199. Annual plans for CPAs start at $499/yr. See pricing
What’s in a WageProof report?
A simplified example of the task-by-task breakdown. Your report reflects your actual role, location, and experience.
Each task you perform is priced using BLS wage data for your 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.
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.
Find out what reasonable looks like
Pick your tasks. Get a salary backed by BLS data.
Start Your Report