Form 2553

What is Form 2553?

A tax form that a corporation can file to elect taxation as an S corporation which also provides documentation of the effective date of the S corporation election.

Why Form 2553 Matters

Form 2553 plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.