Reasonable Compensation — Defend Every Dollar.
Stop guessing what to pay S-Corp officers. Debits builds audit-defensible compensation reports backed by BLS data — from survey to signed report in minutes.
Build a Compensation Survey in Minutes
Every reasonable compensation study starts with understanding what the officer actually does. Debits provides pre-built templates by business type — restaurant owners, general contractors, and more — so you never start from scratch. Define officer roles, assign tasks with SOC-coded job descriptions, and allocate hours across responsibilities. Real-time BLS wage data populates automatically based on geography and occupation.
Generate Audit-Defensible Reports Automatically
Debits calculates compensation ranges using Bureau of Labor Statistics occupational wage data, adjusted for geographic location, proficiency level, and industry. AI generates professional executive summaries, narrative analysis, and IRS audit defense notes. Every report includes methodology documentation, legal citations, and a defensibility score — ready to withstand scrutiny.
Deliver and Collect Signatures in One Click
Send polished, branded PDF reports via email, client portal, or magic link. Clients review the full report and sign directly from their device — no login required. Track delivery status, collect signatures, and maintain a complete audit trail without a single follow-up email.
Monitor Every Client, Every Year
Reasonable compensation isn't one-and-done. Debits tracks compensation health across your entire client base with a monitoring dashboard. Get automatic alerts when BLS wage data changes, annual reviews come due, or a report needs refreshing. Year-over-year comparison and historical trend analysis make recurring engagements effortless.
Frequently asked questions:
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How much does reasonable compensation cost on Debits?
$50 per report. No per seat charges.
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What data does Debits use to calculate reasonable compensation?
Bureau of Labor Statistics (BLS) occupational wage data, adjusted for geographic location (metro, state, and national), officer proficiency level, and industry. Data confidence scoring alerts you when information may be limited.
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What types of businesses does this support?
Any S-Corporation (1120S) where an officer needs a documented reasonable compensation determination. Pre-built templates cover common business types like restaurant owners and general contractors, and you can create custom templates for any industry.
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Can I customize the report?
Yes. Show or hide individual sections, add your firm's logo and brand colors, customize the disclaimer text, and reorder sections to match your presentation style. Reports include up to 15 customizable sections.
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How does the client survey work?
Send clients a secure magic link to complete their compensation survey. They describe their roles, responsibilities, and time allocation directly from any device. Responses sync automatically to the report — no manual data entry.
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Is the report IRS audit-defensible?
Yes. Every report includes BLS data citations, methodology documentation, multi-approach analysis, legal citations, and an audit defensibility score. AI-generated audit defense notes address common IRS challenge points.
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Can I track compensation changes year over year?
Yes. Debits stores all historical surveys and provides year-over-year comparison reports and historical trend analysis, making it easy to document changes over time.
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Can I invite my accounting team to Debits?
Yes. Adding co-workers is free with unlimited invitations.
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Can I suggest a new feature?
Absolutely. Send feature requests to [email protected].