Reasonable comp for solo doctors hits a different bar.
A healthcare-owner reasonable compensation self-audit built around IRS factors, actual duties, hours, and carefully selected wage comparables.
What's inside
- The IRS factors that apply when shareholder-employees perform clinical and management services
- How the David E. Watson, P.C. case informs wage-versus-distribution analysis
- How to use BLS occupation and geography data as one comparability input
- A seven-question evidence review covering duties, hours, comparables, and business economics
- A weighted-duty worksheet for clinical, supervisory, administrative, and ownership roles
- Three concrete moves: corrective payroll, memo, basis schedule
Send me the audit.
The Watson framework still applies. Specialty math changes the number.
A clinical owner can perform several jobs at once: patient care, supervision, administration, marketing, and capital management. A supportable wage method identifies those duties and the hours attributable to each.
This self-audit is built for solo MDs, DOs, dentists, and small practices using an S-corp election. It combines IRS factors with occupation, geography, workload, experience, and responsibility evidence. No single BLS wage is automatically reasonable compensation.
No client-identifying detail is used in the audit. It is general information for owners considering whether their comp structure can defend itself. Specific situations always require a CPA who has seen the books.
General information for physician and dental S-corp owners. Not tax advice for your specific facts. Alex Sears CPA LLC is a Texas-licensed CPA firm.