How Large a Company can RCReports handle?
Our data sets are reliable up to 25m in Adjusted Gross Profit and/or 250 FTE. Above those thresholds
our data is not stable.
Adjusted gross profit is gross revenue less the direct cost of producing this income. The direct cost of
producing income is all expenses that have a one to one relationship to producing income. This concept
is like but not identical to gross profit.
How do I remove the DRAFT stamp?
To remove the Draft stamp, you will need to manually lock the report. You can do this from the options
drop down beside the report you want to lock – choose Lock Report
Keep in mind you will no longer be able to edit the report.
The report will lock automatically after 30 days, unless you lock it manually before that.
For more on the subject click HERE
What if I only want one report?
We recently upgraded our platform to include additional report types and approaches for determining
Reasonable Compensation. Part of that upgrade was discontinuing our Pay-as-you-go option ($199 each
report) and replacing it with an unlimited 3-month subscription for $299 so you won't be tied down to
just one approach. (view pricing HERE).
Can I get a Free Trial?
We do not offer free trials; however, we have a 30-day money back guarantee. If for any reason the
software is not performing to your expectations – contact us. If we can’t solve the concern, we will
refund you money.
If you would like to get to know the software better before subscribing please link to our Get Started
View a recorded demo HERE
What is included in the Reasonable Compensation Figure?
Reasonable Compensation figures includes taxable Medicare wages & bonuses, healthcare and flexible
spending accounts (FSA). It does not include non-taxable fringe benefits such as vehicle or vehicle
allowance, stock options, company loans and other items not reported on a W-2 as taxable
What If an S Corp Owner Can’t Afford to Pay Reasonable Compensation?
This is by far the number one question we receive, and the answer is both simple and complex. Why?
Because the amount of Reasonable Compensation actually paid is tied to distributions, not profit or loss.
What should I consider when selecting proficiency?
Picture yourself in a room of 100 peers who perform the same task. How would you rate yourself
among the 100 people in the room? Bottom 10% rate proficiency low, top 10% high and so on.
Rating proficiency is a judgment call, but it is based on some perception of how well one performs a
Where do you get your data?
Exactly how our wage estimates are derived is a trade secret. What we can share with you is that all
data meets stick confidence levels. Some of our sources of raw data include the U.S. Bureau of Labor
Statistics, the U.S. Census Bureau, and state departments of labor. In addition, we provide a
comprehensive Methodology report to any of our users presenting one of our reports in an examination
Why are hours limited to 40 for compliance reports?
RCReports bases its methodology off IRS guidelines and court cases. In a recent court case McAlary v.
the IRS, both the IRS expert and the courts use the industry standard of 40 hours per week even though
Mr. McAlary worked well over 40 hours per week (he was in the 60 to 80 hours per week range). You
can find this court case and other helpful information in the resource library located in the tools tab.
Therefore, we limit hours to 40 for our S & C Corp Compliance Reports. If you want to exceed 40/week
you can accomplish this by running a Planning report for the client. Although we don't recommend
exceeding 40/week we do not limit hours to 40 in the Planning (or Normalization) reports.
Can I run reports for previous years?
Yes, our wage database includes wages from 2001 to present.