Salary Planning Worksheet

Client / Family Name

Spouse 1 Name

Spouse 2 Name

Tax Year

Date Prepared

Quick Reference: Follow the workflow tracker above step-by-step. Add each S-Corp / C-Corp / LLC-taxed-as-S-Corp that pays W-2 salary to either spouse. For each entity, enter the RC Reports reasonable comp range (low/mid/high), the proposed salary, and any notes. If there's a holding/management company structure with common ownership, enable Common Paymaster below. The worksheet auto-calculates payroll tax impacts and produces a print-ready deliverable.

Import tip: If you've already built the entity structure in the Tax Entity Diagram, click "Import from Diagram JSON" to pull in all S-Corps and C-Corps automatically.

🗺 WORKFLOW — How to Produce Your Client Deliverable

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Enter Client Info

Fill in the Client/Family Name, both spouse names, tax year, and date prepared in the bar above. These flow into the print header automatically.

Add Entities (S-Corps / C-Corps)

Scroll down to "Entity-by-Entity Salary Detail". Add each entity that pays W-2 salary using the form or by importing your Diagram JSON. Tip: you only need entities that pay wages — skip disregarded LLCs, trusts, and holding companies.

Fill In RC Reports & Proposed Salaries

For each entity card, check which spouse(s) are Active, enter their role/title, hours/week, and the RC Reports low/mid/high range from your reasonable comp report. Then set the ★ Proposed W-2 Salary — the tool will tell you if it's within the RC range.

Evaluate Common Paymaster (if applicable)

If one person works across 2+ related entities, open the "Common Paymaster Analysis" section above. Select the paymaster entity, set the ownership % and group type. The tool calculates FICA savings automatically. If not applicable, skip this step — leave it set to "None."

Review Summary & Verify Tax Params

Scroll to "Aggregate Salary & Payroll Tax Summary" and review the totals. Verify the tax parameters are correct for your state (especially the State UI rate). Click "⟳ Recalculate All" if anything looks off.

Write Strategy Notes

Open the "Strategy Notes & Recommendations" section and document your rationale: why you chose each salary level, retirement plan implications, common paymaster savings, and any client-specific considerations. This prints on the deliverable.

Complete Documentation Package per Entity

Open each entity's "📋 RC Basis & Documentation Package" panel. Set the Activity Classification, confirm the auto-generated Legal/IRS Basis Note, fill in the Time Allocation table (hours by role + hourly rates), and check off each item in the Documentation Checklist. For partnerships, complete the SE Tax Analysis panel.

Print or Save Your Deliverable

Click "🖨 Print Deliverable" in the header to generate a clean, branded PDF. The print view hides all edit controls and shows a professional layout including the legal basis notes and documentation status for each entity. You can also "💾 Save JSON" to preserve your work and reload it later.

📄 What the Client Gets

The printed deliverable includes: client header with names and tax year, entity-by-entity salary cards with RC ranges and proposed salaries, the full payroll tax summary table with employer/employee breakdowns, common paymaster savings (if applicable), and your strategy notes — all formatted as a professional, confidential worksheet branded to your firm. Use Ctrl+P → Save as PDF or print directly.

✦ Common Paymaster Analysis ▾

Common Paymaster Qualification — IRC §3121(s)

Designated Common Paymaster Entity

Related Group Type

Common Ownership %

Employee Works for Multiple Entities?

Common Paymaster Notes / Analysis Builds template from entities above — edit as needed

⚠ Configure the fields above to evaluate Common Paymaster qualification.

Common Paymaster Effect: When qualified, FICA wage base ($176,100 for 2025) and FUTA ($7,000) are applied once across all related entities instead of separately per entity. The designated paymaster entity remits payroll taxes and is reimbursed by the other entities. This avoids "double-stacking" the SS wage base and can save ~$17,000+ in combined employer/employee FICA per person.

⚙ Tax Parameters — 2025 ▾

Populates IRS-published rates for the selected planning year. Edit any field to override.

SS Wage Base ⓘ

2024: $168,600 | 2025: $176,100 | 2026: $176,100

SS Rate (Employer) ⓘ

Fixed at 6.2% (statutory)

SS Rate (Employee) ⓘ

Fixed at 6.2% (statutory)

Medicare Rate (Each) ⓘ

Fixed at 1.45% each (statutory)

Addl Medicare (>$200k) ⓘ

Employee-only, no employer match

FUTA Wage Base ⓘ

Has been $7,000 since 1983

FUTA Rate (net) ⓘ

Net after 5.4% state credit

Est. State UI Rate (%) ⓘ

Varies by state & experience — edit per client

⏱ Hours & Salary Reference Chart — by Activity & Participation Type ►

Reference only — use to estimate hrs/week in the Time Allocation section and cross-check RC Reports figures. These are typical ranges; actual hours vary by entity size, complexity, and lifecycle stage.

Classification	Typical Role Description	Hrs/Week Typical	Hrs/Week Low	Hrs/Week High	Salary Benchmark Range	Notes
ACTIVE CLINICAL + PROFESSIONAL OVERSIGHT (Licensed, Patient/Client-Facing)
Full-time clinical practice	Sees patients/clients 4-5 days/week, does all clinical work personally	35–45	30	50+	Dentist: $150k–$280k Physician: $220k–$400k+ Attorney: $120k–$300k	Use clinical/professional rate. RC Reports critical.
Part-time clinical (associate model)	Sees patients 2-3 days/week, associates handle remainder	15–25	10	30	Prorated to clinical days. $80k–$180k typical.	Pro-rate the clinical rate by actual days worked.
ACTIVE OVERSIGHT / BOARD-REGULATED (Licensed, No Direct Clinical Work)
Licensed supervisory owner	No patient/client contact; reviews records, signs off on clinical protocols, available for consultation	5–10	3	15	$40k–$100k (oversight rate, not full clinical)	Do NOT use full clinical rate. Benchmark to supervisory/oversight role only.
ACTIVE OWNER-OPERATOR — HANDS-ON / OPERATIONAL (Any Industry)
Sole or primary operator	Runs day-to-day: manages staff, serves customers, handles operations personally	40–50	30	60+	CEO/GM: $80k–$200k. Benchmark to industry equivalent role (BLS SOC codes).	RC Reports report required. Full working-owner rate.
Working owner, delegated ops	Handles key accounts/production; managers handle staff	20–35	15	40	$60k–$150k. Weight toward revenue-generating role rate.	Document split between production vs. management time.
ACTIVE MANAGEMENT / EXECUTIVE (Strategic Oversight, Not Day-to-Day)
Holding co / multi-entity exec	Reviews financials, sets strategy, approves major decisions, attends management meetings	10–20	5	25	$50k–$130k. Executive/board-level rate per entity role.	Multi-entity: allocate total hrs across entities. Total should be reasonable for one person.
CEO/President, dedicated entity	Full-time executive leadership; hires/fires, P&L responsibility, growth strategy	40–50	35	55	$100k–$250k+. BLS SOC 11-1011 (Chief Executives).	Full-time exec rate justified even without operational work.
ACTIVE SUPERVISORY / OVERSIGHT ONLY (Limited Operational Role)
Non-operating owner, oversight	Reviews monthly reports, approves budgets, available to managers — not in the office regularly	3–8	2	12	$20k–$60k. Part-time advisory rate.	Lower salary is defensible with good documentation of limited role.
⚠ Multi-Entity Rule: If one owner works across 3 entities, total hours across all cards should realistically add up to a believable workweek. If entity A = 30 hrs, B = 20 hrs, C = 15 hrs = 65 hrs/week — that requires documentation or adjustment. The tool does not auto-cap, so verify total hrs manually when an owner has 3+ entities.

📋 Entity-by-Entity Salary Detail

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ⓘ HOW THIS WORKS — RC Reports, Hours & Proposed Salary (click to expand)

① RC Reports Range

Run one RC Reports report per entity, per owner, per year. Enter the Low/Mid/High from that report. This is your market benchmark — the defensible range of reasonable compensation for the role in that geography.

② Hours / Week

The hours field is your justification multiplier. An owner working 40 hrs/week at a $150k mid-range role is straightforward. An owner working 8 hrs/week at the same $150k needs documentation explaining why. Hours drive the time allocation cross-check in the RC Basis panel below each card.

③ Proposed W-2

Your decision — must fall defensibly within the RC Reports range (or documented below it with rationale). For multi-entity owners, the total proposed salary across all entities should not exceed what the owner would earn as a single hired employee doing all those roles.

Multi-Entity Owners (5+ S-Corps): You do not need to run RC Reports separately for every entity if the owner performs the same role. Run one report for each distinct role type (e.g., one for "dental practice owner," one for "management company CEO"). Use that range across entities of the same type. The key is the aggregate salary across all entities should not exceed a reasonable total for one person's time — document total annual hours across all entities in Strategy Notes.

Common Mistake: Setting salary equal to the RC Reports low for every entity when the owner works part-time at most of them. The IRS looks at total aggregate compensation. If someone has 6 S-Corps each paying $50k/year = $300k/year, that may exceed what the RC Reports data supports for the actual hours worked. Use the Prior Salary field to show what changed and why.

Entity Name

Entity Type

EIN (optional)

📎 Click to import entities from your Tax Entity Diagram JSON file
(auto-detects S-Corps and C-Corps that pay salaries)

No entities added yet. Add an entity above or import from your diagram.

📊 Aggregate Salary & Payroll Tax Summary ▾

Add entities and salary data to see the aggregate summary.

📝 Strategy Notes & Recommendations ▾

Builds a planning summary from all entities — edit to customize