Reasonable Compensation
For years now, the IRS has required shareholder employees of S-Corporations to pay themselves a reasonable salary via a W-2. However, many have avoided this requirement, underpaying or not paying themselves at all to avoid certain taxes.

In recent years, the IRS has cracked down on this requirement, performing reasonable compensation audits at a much higher rate. That means, if you are a shareholder employee of your company and the business gets audited, you could face hefty penalties if the audit reveals you receive a lesser salary than you should or no salary at all.
Fortunately, the experts at ClaytonCarter offer reasonable compensation analyses and reports to ensure your shareholder employees are better protected should an audit come your way.

How Does a Reasonable Compensation Analysis From ClaytonCarter Work?
Through a phone call that lasts less than one hour, you will provide a ClaytonCarter team member the information we need to evaluate your current compensation and calculate what compensation you should be receiving.
- Call ClaytonCarter at 478-621-4145.
- Tell us about your duties as a shareholder employee.
- Tell us about your current compensation.
- Receive an unbiased report, documenting your reasonable compensation figure.
- Adjust your salary if the reported figure and your current figure differ.
- Provide the report to the IRS should you be audited.