CONCERNED ABOUT YOUR REASONABLE COMPENSATION?

Reasonable compensation is considered what an S-Corp owner is required to pay themselves based on their industry standard salary. Therefore the IRS will ask if you were to hire someone to do everything you do how much would you have to pay them?

The IRS or the state can audit your salary. If they find you are not paying yourself enough then can then more all your distributions to payroll. This creates a whirlwind of problems. You will then have multiple penalties and additional taxes along with having to refile your taxes and payroll forms. 

To protect yourself from the IRS and the state we complete a comparison of other professionals in your area. Also take into consideration all the many hats you wear as an owner. Once we have compiled everything you will have an amazing report to add into your meetings and a letter about how you are instating this as your salary. This will help solidify your payroll against audits.