Reasonable Compensation Study NJ | For S-Corp Owners

Reasonable Compensation Study NJ — The S-Corp Must-Have

If you’re an S-Corp owner paying yourself, the IRS expects you to take a reasonable salary before distributions. A reasonable compensation study NJ helps prove your pay is compliant — and defensible.

Why It Matters

Underpaying salary = audit risk. Overpaying = unnecessary payroll taxes.

A documented study finds the right balance.

What’s in a Compensation Study

• Role & duties analysis

• Industry & regional pay data

• Time allocation (admin vs. production)

• Salary justification letter for audit defense

Frequency

Update your study every 2–3 years or whenever your duties or revenue change.

CPA Tip:

A solid reasonable compensation study NJ reduces audit exposure and keeps your tax savings intact.

Need a Custom S-Corp Compensation Study?

Gregory Monaco, CPA LLC in Livingston, NJ performs compensation studies using real data and IRS-safe methods.

We’ll document everything so you stay compliant and confident.

→ Book a Free Consultation • Bookkeeping & Accounting • Tax Preparation & Planning

Gregory Monaco, CPA | Livingston NJ (serving NJ + virtual nationwide)