Tax Planning • Client Questionnaire

S-Corporation
Reasonable Compensation

Please complete this questionnaire for each S-corporation shareholder who performs services for the company. Your responses help Frausto Management Group evaluate and document a reasonable level of officer compensation based on the shareholder’s actual duties, time commitment, experience, and the way the business generates revenue.

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01 / Company

Shareholder & Officer Information

Complete a separate questionnaire for each shareholder who performs services for the corporation.

Shareholder / officer name *

Ownership percentage *

Officer title *

Years of industry experience

Years working for this business

Average hours worked per week *

Approximate weeks worked during the year *

Hours per week worked for another business, if any

Education, licenses, certifications, specialized training, or unusual expertise

03 / Duties

Duties & Time Allocation

Estimate the percentage of working time spent in each area. The percentages should total 100%.

Function	% of time	Brief description
Primary billable / client service
Sales / business development
Managing employees
Operations / project management
Accounting / finance
Administration
Marketing / social media
Customer / client service
Technical / professional work
Strategic management / CEO duties
Other

Total allocated time0%

Please adjust the percentages so the total equals exactly 100%.

04 / Revenue

Revenue & Business Operations

These questions help us understand how much of the business income is tied to the shareholder’s personal services versus the broader business operation.

% of revenue attributable directly to shareholder services

% attributable to employees / subcontractors

% attributable to capital, equipment, inventory, IP, or other assets

Annual pay of employees doing similar work, if applicable

Could the business generate similar revenue if the shareholder stopped personally providing services and acted only as an owner?

Yes Partially No Unsure

Are employees or contractors performing substantially similar work? If yes, describe their roles and approximate compensation.

05 / Compensation

Compensation History

Provide the best available estimates for the current year and prior year.

Current-year W-2 wages paid / expected

Prior-year W-2 wages

Current-year shareholder distributions paid / expected

Prior-year shareholder distributions

Bonuses paid / expected

Employer-paid shareholder health insurance

Employer retirement contribution for shareholder

Other compensation / fringe benefits

Is there a written employment or compensation agreement? If yes, briefly describe it.

06 / Market

Comparable Position & Replacement Cost

Think about what the company would need to pay an unrelated person — or people — to perform the same work.

If you hired someone else to perform the shareholder’s duties, what job title or combination of job titles would you hire?

Would one person realistically perform all of these duties?

Yes No Unsure

What do you believe the company would need to pay someone locally to perform these duties?

Any unusual factors that should increase or decrease comparable compensation?

07 / Certification

Changes & Certification

Please identify any material changes and confirm that the information provided reasonably reflects the year being analyzed.

Describe any material changes from the prior year in duties, hours worked, ownership, revenue, employees, or company operations.

Additional comments or information we should consider

I certify that the information provided above is complete to the best of my knowledge and reasonably reflects the services performed and business operations for the tax year indicated.

Name of person completing questionnaire *

Date *

When You’re Finished

Click the button below and choose Save as PDF in your browser’s print window. Then email the completed questionnaire to ronnie@fmgla.com.

Confidential client questionnaire. This information is collected to assist Frausto Management Group with tax analysis and documentation. This questionnaire does not constitute an IRS determination or guarantee of any particular tax treatment.

Company Information