- February 7, 2020
- Posted by: RCR Admin Team
With a premium subscription you have access to our Warp Speed Wages tool. This tool allows you to query our vast database to find hourly wages for over 6000 occupations, quickly calculate the reasonable compensation figure for a management position in 105 industries or use the income approach calculator to obtain a reasonable comp figure in warp speed.
- For Cross Industry wages (used in cost reports) you’ll start by selecting the state and county you wish to query. Next search for the desired job title and select it. Results will display for 5 proficiency levels and include local, state and national data.
- For Industry Specific wages (used in market reports) you’ll start by selecting the year, industry, management or executive role, and location located in the Basic Criteria tab.
- Next select the Business Criteria tab and select the appropriate inputs for your client. Once all inputs are entered your suggested reasonable compensation figure will appear along with a range at the national, state, and local level (if you selected one).
- If you would like to save this lookup to a client profile select Convert to Report and Save.
- The Independent Investors Test (used in income reports) relies on a simple calculation based on 3 inputs to calculate a reasonable compensation figure:
- Fair market value at the beginning of the year
- Estimated increase in fair market value at the end of the year (before owner compensation)
- Target return
- Fine tune your calculation by selecting any of the adjacent return rates. If you would like to save this calculation to a client profile select Convert to Report and Save.
Last Update: February 8, 2022
Tell us how can we improve this post?
Add A Knowledge Base Question !
Book a personalized, 30 Minute Demo.