RCReports Help Center

Learn how to use RCReports to generate accurate and defensible reasonable compensation reports for your clients.

Reports & Methodologies

Benchmarks

Benchmarking provides an easy, data-driven way to generate a compensation range for each of your clients and are automatically generated for every client added to RCReports. Benchmarks are designed to provide a fast, directional compensation estimate, have a 90% confidence level, and are not fully defensible. For full compliance and defensibility a reasonable compensation report will still need to be generated for each S-Corp client.

How Benchmarking Works

When creating a client in RCReports, the following information is required:

  • Full Name

  • Business Name

  • Email Address

  • ZIP Code

  • NAICS Code

  • Number of Full-Time Employees

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The benchmark is generated using:

  • ZIP Code

  • NAICS Code

  • Number of Full-Time Employees

Using this data, RCReports is able to analyze the millions of datapoints collected from similar businesses to generate a fast, accurate compensation range. After generating a Benchmark you can generate a fully defensible reasonable compensation report by clicking "Run Full Report."

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For questions or concerns, contact RCReports at 720-279-8800 or support@rcreports.com

Related Articles

Step 2: Run a Benchmark

How to run wage benchmarks for new and existing clients.

CYA Compliance Report

CYA Reports provide a documented release of liability for the Tax Professional if their client chooses to go against their advice and forego the need to run a reasonable compensation report.

Cost Approach

The Cost Approach (AKA the Many Hats Approach) is the most common way to determine reasonable compensation. It calculates a reasonable compensation by determining what the replacement cost for each service a shareholder provides their business.

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