Salary Sherpa is a reasonable compensation reporting tool designed for U.S.-based S-Corporation owners. For just $397, we deliver a detailed compensation report—no guesswork, no stress. Order now, and use it with your next return, or save it for your audit file.

🛑 Important: This report is only as reliable as the information you provide. We help support your decision, but we don’t make it for you.

You’ll complete a short questionnaire with details about your business, your roles, and how your time is spent. Based on your input, we generate a report that aligns with IRS guidance on reasonable compensation.

💡 But remember: To be fully compliant, you’ll also need written job descriptions, time tracking, and other documentation to back up your choices.

We plan to expand our offerings to include:

• Document Storage
• Customizable Compliance templates
• Tools for common S-Corp reporting needs

Our goal is to make compliance easier and more actionable for S-Corp owners at every stage.

Yes — whether you’re newly elected or have been an S-Corp for years, Salary Sherpa helps you approach reasonable compensation with clarity and confidence.

✨ That said: The report is just one piece of the compliance puzzle. You’ll still need to maintain records that support the data used to generate your report.

Need help? Confused about your report? You can reach us through our contact form anytime. We’re here to support you — no jargon, no judgment.

No — this report is not submitted to the IRS. It’s a tool to help guide your compensation decisions. It does not replace the need for supporting documentation like:

• Job descriptions
• Hour logs
• Payroll records
• Industry comparisons

Without those, your S-Corp is still at risk — even if your report looks perfect.

Use it as a starting point. You’ll want to:

• Set up consistent payroll.
• Track the hours you work in each role.
• Maintain written job descriptions.
• Save this report in case of an audit.

🧾 The IRS wants to see a full picture, not just a number.

Technically, yes — but doing that without proper documentation is risky. The IRS expects “reasonable compensation,” and if they audit you, they’ll look at your actual work, not just your intentions.

Then your S-Corp is not in compliance — and the limited liability protection that comes with your S election may not hold up.

🚨 Translation: No salary, no shield.

Yes. Reasonable compensation isn’t a one-and-done deal — it changes with your role, your business income, and economic conditions. We recommend completing a new Salary Sherpa form each year, especially if your business or duties evolve.

Not really. Salary Sherpa is meant to guide future decisions. If you’re trying to justify a number for a prior year, you’ll need documentation from that time — not a report you created afterward.

Only if the number aligns with the data you input. If you’re using the report just to “make it match,” that defeats the purpose — and won’t hold up in an audit.

Nope. We’re not the IRS, and this isn’t one-size-fits-all. Your report gives you a data-backed range and guidance — but the final decision (and the responsibility for backing it up) is yours.

Most users finish in under 10 minutes — especially if they already know their job duties and time breakdown. The more prepared you are, the stronger your report will be.

Yes. Your data is collected through secure forms and stored with high-level encryption. We never sell or share your information. Ever.

No — our service is intended for adult S-Corp owners only.

To generate your report, you’ll need to know:

• Your current W-2 salary (if any)
• Distributions taken last year
• Your business’s expected revenue and net income this year
• The salary of the highest-paid employee doing a job similar to yours (if applicable)
• Your approximate time allocation across these roles:

• Management
• Operations
• Sales
• Service/Production
• Admin

The more accurate you are, the better your report will reflect reality (and hold up under scrutiny).

We love you, but no. You know your business best — and we don’t want to guess. If you’re not sure how to answer something, ask your tax advisor or accountant. Better yet, document it all now so you’re ready if the IRS ever comes knocking.