S-Corp Reasonable Salary & Distribution Optimizer (US)
Find the salary/distribution split that stops overpaying payroll tax.
For S-Corp owners who suspect their salary number is costing them thousands but have never seen the trade-off calculated.
S-Corp Reasonable Salary & Distribution Optimizer (US) is an 8-tab Excel and Google Sheets workbook. 1 you type into, 5 calculated from those and 2 you set once. No macros, so it opens without a security warning.
- Dashboard Total payroll tax on your split, distribution available, salary as a share of profit, and the net difference against staying a sole proprietor.
- Dashboard (Dark) The same dashboard in a dark theme, for screens that are easier on the eyes at night.
- Optimizer The salary and distribution split, worked out from your profit and the comparables on the worksheet.
Filed under tax & self-employed.
An educational tool, not tax advice. It works from your own figures and shows the trade-off; the salary you pay is for you and your CPA or enrolled agent to set. The IRS explains reasonable pay on S corporation compensation.
5 of the 8 tabs, exactly as they look in the file. Click a tab to look inside.
Sound familiar?
What's inside, tab by tab
You only ever type in the highlighted input cells. Everything else is calculated from what you type.
| Tab | What you do | What it does |
|---|---|---|
| Tab 1Start Here | Set once, never again | A one-page setup guide inside the workbook. Enter your basics once, in about 5 to 10 minutes. |
| Tab 2Dashboard | Calculated for you | Total payroll tax on your split, distribution available, salary as a share of profit, and the net difference against staying a sole proprietor. |
| Tab 3Dashboard (Dark) | Calculated for you | The same dashboard in a dark theme, for screens that are easier on the eyes at night. |
| Tab 4Optimizer | Calculated for you | The salary and distribution split, worked out from your profit and the comparables on the worksheet. |
| Tab 5Reasonable Comp Worksheet | You type here | Duty you perform, hours per week, weeks per period, the market rate range you found and where you found it. This is the evidence behind the salary number. |
| Tab 6Scenario Manager | Calculated for you | Low end, midpoint and high end of your comparables, side by side with a salary of your own. |
| Tab 7CPA Handoff Pack | Calculated for you | Line by line: sole proprietor, your S-corp split, and the difference between them. Built to hand to an accountant. |
| Tab 8Settings & Lists | Set once, never again | The dropdown lists and defaults the rest of the workbook reads. Change them once and every sheet follows. |
Good to know
Is an S corp worth it at your profit?
It depends on your profit and on what payroll costs you to run, and the Optimizer takes both. You type your profit and your yearly cost of running payroll (the payroll service, the 941 and 940 filings, the W-2s), and it compares payroll tax plus that cost against the self-employment tax you would pay without the election. In the sample file, $250,000 of profit with a $120,000 salary saves $11,491 in payroll tax, running payroll costs $900, and the net difference is $10,591. Income tax, the QBI deduction and state tax are left out, and the file says so.
A salary range built duty by duty
The IRS lists the factors courts use for reasonable compensation, including your duties, the time you give the business and what comparable businesses pay for similar services. The Reasonable Comp Worksheet follows that list. You add one row per duty you actually do, with the hours a week it takes and the low and high market wage you found for that work, where you found it and the date you checked. The file multiplies those into a range and says whether the salary you are considering sits inside it. It never names a salary.
Built like software, priced like a spreadsheet
Enter your data; totals, flags and the dashboard update instantly.
Checked cell by cell before release. Find one and we will fix it.
Formula cells are protected. You can only type where typing is safe.
Both versions in every purchase. No converting, no broken references.
Clean report pages for your records, your accountant, or your next meeting.
Delivered by Etsy the moment you pay. Free updates to this template forever.
How it works
Secure checkout through Etsy, no account needed here.
The Excel file and the Google Sheets link arrive immediately.
Type into the highlighted cells and every total is calculated from what you typed.
Questions, answered
Do I need a paid Excel version?
Any desktop Excel from 2016 onward works, including Microsoft 365. If you don’t have Excel at all, use the included Google Sheets version. It’s free.
Does it fully work in Google Sheets?
Yes. The Google Sheets version is made from the same file as the Excel one and checked in Google Sheets before release. Every formula uses functions that work the same in both.
Is this a one-time purchase?
Yes. One payment, no subscription. You keep the files forever and get free updates to this template.
What does it not do?
It compares payroll tax and self-employment tax only. It leaves out income tax, the qualified business income deduction, state and local taxes and unemployment tax, and it does not model more than one year. It is not tax advice.
What’s the refund policy?
Refunds follow Etsy’s rules for digital downloads. If a template doesn’t work as described, email support@elecart.us and we will fix it.
What if I get stuck?
Email support@elecart.us and the person who built the template answers, usually within one business day. Etsy Messages works too.
How much data can it handle?
Input tabs are sized generously and tested with full sample data: enough for years of typical use. Need more room? Duplicate the file per year, or email support for an extended version.
Find the salary/distribution split that stops overpaying payroll tax.
$8.69, once, 70% off until Nov 28. Yours forever, with free updates.
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