What is reasonable compensation?

Answers from the sources

  1. WageProof

    “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.”

    Sourcewww.wageproof.com

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Published
2026-10-26
Modified
2026-10-26
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revision Q140262648:content:2ba66e5aa8e15750

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