Lettuce Financial Labs

Documents

Date	Description	Actions
06/09/2026	Pay Stub
05/09/2026	Pay Stub
04/13/2026	Form 941 Employer's Quarterly Federal Tax Return
04/03/2026	Pay Stub
03/11/2026	Pay Stub
02/11/2026	Pay Stub

Lettuce AI

How do I pay myself?

If you’re paying yourself through Lettuce, use Move Money and choose Pay Yourself. You can connect your personal bank account or pick one you already connected, and once the payment goes through, Lettuce automatically categorizes it as an Owner Distribution.

More broadly, if you’re an S Corp owner, the usual setup is:

Pay yourself a reasonable salary through payroll.
Take additional profit as distributions.

Lettuce’s guidance says that after business income lands in Lettuce, enough is automatically set aside for taxes and reasonable salary needs. That means the remaining balance in your Primary account can generally be withdrawn as owner distributions, with no stated limit on frequency or amount, and Lettuce handles the tax/compliance side through the monthly payroll process.

One important note: if you’re an S Corp, you should not just pay yourself only through distributions. The IRS expects you to take a reasonable salary first through payroll, and then distributions on top of that.

If you want, I can also help explain the difference between salary vs. distribution in plain English.

Explain how reasonable salary is calculated and works in my Lettuce account?

In your Lettuce account, your current reasonable salary recommendation is $60,000. Based on your reasonable compensation record, that’s the annual amount Lettuce has calculated for you right now.

Here’s how it works in Lettuce:

Reasonable salary is the portion of your S Corp income that you pay yourself as W-2 payroll. The rest of your profit can generally be taken as distributions. Lettuce uses this split to help keep you compliant while reducing unnecessary self-employment tax exposure.

Lettuce calculates reasonable salary using a mix of factors like your projected income, net income, industry data, and IRS guidelines. The goal is to land on a salary that reflects fair market pay for the work you do, rather than setting it artificially low.

In practice, Lettuce uses that salary recommendation to power payroll and tax withholding. Payroll runs through Lettuce’s payroll setup, tax withholdings are handled automatically, and Lettuce helps keep salary and distributions separate in your records.

Why that matters: the IRS expects S Corp owners who work in the business to pay themselves a reasonable salary before taking distributions. If salary is too low and distributions are too high, that can create compliance risk. Lettuce is designed to help balance those two buckets for you.

If you want, I can also help you translate that $60,000 annual salary into a monthly estimate or compare it to your current payroll setup.

What was my last paycheck?

From your latest payroll run, your last completed paycheck was on June 10, 2026.

Here’s the breakdown from your latest payroll run:

Gross pay: $718.46
Net pay: $20.26
Federal tax: $0.00
State tax: $0.00

You also have a newer payroll dated July 10, 2026, but that one is still in progress, so it isn’t your last completed paycheck yet.

If you want, I can also summarize your last few paychecks so you can see the pattern.

What's my reasonable salary so far this year?

Based on your reasonable compensation record, your current annual reasonable salary is $60,000.

From your latest payroll runs, you’ve had 5 completed paychecks so far in 2026, with total gross pay of $39,591.44 year to date. That’s the amount you’ve actually been paid through completed payroll so far this year.

Those are slightly different numbers:

$60,000 is your current annual reasonable salary target
$39,591.44 is the gross salary you’ve actually received so far this year through completed payroll
You also have another payroll for July 10, 2026 in progress for $8,832.29 gross, but it’s not completed yet

If you want, I can also break that down by paycheck or estimate how close you are to your full-year reasonable salary target.

How much will I make this year?

Based on your financial preview, Lettuce is currently projecting $36,340.47 in total income for you in 2026.

Here’s the breakdown from that same financial preview:

Salary net pay: $26,689.01
Owner’s profits: $9,651.46
Total taxes: $23,015.25
Gross business income: $137,867.22

A quick note on what that means:

“Total income” here is your projected take-home after payroll taxes and salary withholding, plus projected owner’s profits
It’s a projection based on your current numbers, so it can change if your income, expenses, or payroll changes

Based on your income statement, your business is currently at:

$137,867.22 in year-to-date business income
$78,511.50 in year-to-date business expenses

If you want, I can also break down how Lettuce got to that $36,340.47 number in plain English.

Can I use my existing business bank account with Lettuce?

Yes — but with an important catch.

Lettuce requires you to use the Lettuce business bank account for core business flows like receiving deposits, running payroll, and making tax payments. That’s what enables the automation around separating salary, owner distributions, and taxes correctly.

You can still keep your existing business bank account and use it alongside Lettuce. Once funds have been handled in Lettuce the right way, you’re free to transfer money out to your existing accounts, and those transfers are supported without fees.

So the short version is:

Yes, you can keep your existing business bank account.
No, it can’t replace the Lettuce account for the main automated workflows.

If you want, I can also explain how this usually works day to day so it feels less like switching everything over.

Can I adjust my payroll settings within Lettuce's platform?

Yes — to a point.

Lettuce lets you complete the initial payroll setup steps in the platform, and it prompts you for anything needed along the way, like registration details and the personal account where your net pay should go. Once payroll is activated, though, regular payroll runs are automatic rather than something you manually tweak each cycle.

A few important limits:

You can’t manually set a custom tax withholding percentage for payroll. Lettuce calculates that for you based on salary compliance and your tax setup.
You can’t change your payday or switch to more frequent payroll runs. Lettuce currently runs payroll once a month, on the 10th, with slight shifts for weekends or bank holidays.
If your income changes, the main lever you can update is your income estimate, which Lettuce uses to recalculate withholding going forward.

So the short answer is: yes, you can manage setup and some inputs in the platform, but no, Lettuce doesn’t currently offer fully manual payroll settings like custom pay dates, custom run frequency, or direct withholding edits.

If you want, I can also explain which parts of payroll are automatic versus which parts you still control.

What's my current ratio between salary and business income?

From your financial preview, your current salary-to-business-income ratio is about 36.1%.

That’s based on:

Salary: $49,704.26
Gross business income: $137,867.22

So in plain English, about 36 cents of every $1.00 of business income is currently being allocated to salary.

If you want the same ratio another way, based on your completed payroll only, your completed gross pay so far this year is $39,591.44 against $137,867.22 of business income, which is about 28.7%.

Those two views are a little different because:

36.1% comes from your financial preview, which includes pending year-to-date payroll planning
28.7% comes from your completed payroll runs only, so it excludes payroll that’s still in progress

If you want, I can also show your salary vs. owner’s profits ratio instead.

How much money do I need to set aside for taxes?

From your tax summary, Lettuce currently shows you’re on track for 2026.

Here’s the clearest way to look at it from your tax summary:

On-track range to have set aside by now: $12,222.82 to $17,339.93
Taxes already paid year to date: $13,645.58

That means you’re currently within the on-track range.

If you mean your full-year tax bill, from your tax estimate it’s currently projected at:

Federal: $17,639.85
State: $7,945.72
Total: $25,585.57

If you mean how much Lettuce is targeting for you to have set aside so far this year, from your tax target it’s:

Federal: $10,133.15
State: $4,564.39
Total: $14,697.54

So the short answer is:

To stay on pace right now, you should be around $12.2k to $17.3k set aside
Your account shows $13.6k paid so far
Your current full-year projected taxes are about $25.6k

If you want, I can also break down whether you’re slightly ahead or behind the current target.

How does Lettuce calculate the optimal salary for me?

Lettuce calculates your optimal salary by balancing two goals: keeping you IRS-compliant and helping you avoid paying more payroll tax than necessary. In plain English, it’s trying to find a defensible salary for the work you do, while letting the rest of your eligible profit flow through as distributions.

The calculation is not a single flat formula for everyone. Lettuce looks at things like your business income, expenses, the kind of work you do, your skill level, how many hours you work, and what similar roles are typically paid in your area. It also uses industry benchmarks and IRS guidance as part of that analysis.

A big input is your business income, especially your net income. Lettuce uses a percentage-based approach to route part of your income toward W-2 salary, and many customers land somewhere around 40% of gross business income or at least 40% of net profit as salary as a rule of thumb. But that’s just a benchmark, not a one-size-fits-all rule. The actual recommendation comes from the full reasonable compensation analysis.

Lettuce also factors in your broader tax picture. That can include things like other W-2 income, a spouse’s income, investment gains or losses, and your estimated personal tax liability, because those can affect the most tax-efficient salary/distribution mix for you.

One important detail: your salary in Lettuce is dynamic, not necessarily a fixed annual number forever. As your income changes during the year, Lettuce can recalculate the salary allocation, adjust payroll and withholdings, and keep the recommendation aligned with your current business performance.

Once that salary is set, Lettuce uses it to run payroll, withhold taxes, and keep salary and distributions clearly separated in your records. That’s what helps keep the setup both organized and compliant.

If you want, I can also explain how this applies to your own current salary recommendation in your account.

How does Lettuce determine a "reasonable salary" for S-Corp owners?

Lettuce determines a reasonable salary by trying to land on a pay level that is both IRS-compliant and tax-efficient for the work you do as an S Corp owner. The goal is to make sure you’re paying yourself a fair W-2 wage before taking distributions, without setting salary unnecessarily high.

It does not use one fixed formula for everyone. Lettuce looks at several factors, including your business income and expenses, the type of work you do, your skill level, how many hours you work, and what similar roles are typically paid in your geographic area. It also uses industry benchmarks and IRS guidance as part of the analysis.

A major input is your business income, especially net income. Lettuce uses a percentage-based approach that routes part of your income toward W-2 salary. As a rule of thumb, many customers may land around 40% of gross business income, or at least 40% of net profit as salary, but that’s just a benchmark. The actual recommendation comes from the full reasonable compensation analysis, not a one-size-fits-all percentage.

Lettuce also considers your broader tax picture. That can include things like other W-2 income, a spouse’s income, investment gains or losses, and your estimated personal tax liability, because those can affect the most efficient salary-versus-distribution mix.

Another important piece is that the salary is dynamic. It can change as your income changes during the year. Lettuce monitors your financials, recalculates when needed, and adjusts payroll and withholdings so the recommendation stays aligned with your current business performance.

Once that salary is set, Lettuce uses it to run payroll, handle withholdings, and keep salary and distributions clearly separated in your records. That helps keep the setup organized, documented, and compliant.

If you want, I can also explain the difference between reasonable salary and owner distributions in plain English.

How do I set up payroll or distributions in Lettuce?

Yes. Lettuce helps you set up payroll automatically, and distributions are handled separately so you can pay yourself the right way as an S Corp owner. The usual setup is salary through payroll first, then additional profit as distributions.

For payroll setup, Lettuce starts the payroll registration process once you’ve brought in about $4,000 of business income. The setup flow includes state registration, getting employer and tax IDs back from the state, setting up your Gusto account behind the scenes, and having you choose the personal bank account where your net paycheck should land. If Lettuce needs anything else from you, it prompts you along the way.

Once payroll is active, Lettuce withholds part of your incoming business income into your Salary & Taxes account and runs payroll once a month. That payroll covers your W-2 salary, payroll taxes, and income taxes, and then any remaining net pay is deposited into your personal checking account automatically.

For distributions, you don’t “set them up” the same way as payroll. You take them by using Pay Yourself in Lettuce: open Move Money, choose Pay Yourself, and send money to your personal bank account. Once processed, it’s automatically categorized as an Owner Distribution.

Lettuce also separates the money for you behind the scenes. After business income comes in, Lettuce sets aside enough for taxes and reasonable salary needs. What remains in your Primary business account can generally be used for business expenses or transferred to yourself as distributions, without needing to wait for payroll to run.

One important rule: distributions should not replace payroll. Lettuce is built around keeping salary and distributions separate so you stay compliant with the IRS reasonable compensation requirement.

If you want, I can also explain the difference between what happens automatically in payroll versus what you manually trigger with Pay Yourself.

What happens if my income levels change throughout the year?

If your income changes during the year, Lettuce adjusts with you rather than locking you into one fixed salary plan. Lettuce continuously analyzes your business financials and can recalculate your reasonable salary and tax withholdings so they stay aligned with your current income and profitability.

In practice, that means the percentage of your income allocated to payroll can shift based on things like projected income, net income, industry data, and IRS guidelines. The goal is to keep your salary compliant while still staying as tax-efficient as possible.

It also means your salary and distributions may rebalance over time. If your business earns more, Lettuce may route more toward payroll and still leave additional profit available for distributions. If your income drops, the system can adjust so your payroll and tax setup better reflects the lower income level.

On the tax side, Lettuce handles the payroll tax calculations, withholdings, and filings automatically as payroll runs, so changes in income flow through into those calculations instead of you having to manually redo everything yourself.

So the short version is: if your income moves up or down during the year, Lettuce is designed to update your salary, withholdings, and salary/distribution balance to match.

If you want, I can also explain how that affects your take-home pay month to month.

Is the 40% salary calculated before or after expenses?

In Lettuce’s guidance, the 40% benchmark can show up both ways depending on what you’re referring to.

One version is around 40% of gross business income. Another version is at least 40% of net profit as salary. So if you’re asking “before or after expenses,” the answer is: both benchmarks exist, and Lettuce does not treat 40% as one single fixed rule.

More specifically:

Gross business income = before expenses
Net profit = after expenses

So 40% of gross income would be before expenses, while 40% of net profit would be after expenses.

The bigger point is that Lettuce uses those as rules of thumb, not as a hard formula. The actual salary recommendation is based on a broader reasonable compensation analysis that also considers things like projected income, net income, industry data, and IRS guidance.

If you want, I can also help apply that to your own numbers and show what 40% would look like using your current income.

If I wanted to pay myself right now, how much money can I take out of my business?

Your current account balance in your Primary Checking account is $10,227.68.

If you mean “how much can I safely pay myself right now,” the closest available figure from your financial preview is $9,651.46 in owner’s profits. From your financial preview, that’s the amount currently showing as owner’s profits, separate from salary.

Those two numbers are a little different:

$10,227.68 is the live cash balance in your Primary Checking account
$9,651.46 is the owner’s profits figure in your financial preview

So if you wanted the most conservative answer for paying yourself right now, I’d use $9,651.46 as the cleaner planning number, while your live available cash in Primary Checking is $10,227.68.

If you want, I can also explain the difference between cash in the account and owner’s profits in plain English.

I have 8K in payroll taxes and 15K in income taxes. Can you explain the difference?

Yes — those are two different buckets.

Payroll taxes are tied specifically to your W-2 salary. In your Lettuce setup, that includes taxes connected to running payroll itself, separate from your regular income tax withholding. From your financial preview, your payroll-related tax bucket is currently $8,150.04 under salary other taxes. Those are taxes created by paying yourself through payroll.

Income taxes are your federal and state income tax withholdings on top of that. From your financial preview, your salary income taxes are currently $14,865.21 total, made up of $10,248.75 federal and $4,616.46 state. Those are the taxes based on taxable income, rather than the payroll process itself.

So in plain English:

Payroll taxes = taxes triggered by paying W-2 wages
Income taxes = federal and state taxes withheld based on your taxable income

From your financial preview, that’s why you’re seeing roughly:

$8K in payroll taxes
$15K in income taxes

If you want, I can also break down why both show up when you pay yourself through an S Corp.

I have 88K in adjusted income. What does this mean?

From your financial preview, adjusted income is currently $88,162.96.

In plain English, that’s the amount left after your projected salary is carved out of your gross business income. In the same preview, your gross business income is $137,867.22 and your salary is $49,704.26, which leaves $88,162.96 as adjusted income.

So this number does not mean “cash in your bank account” or “what you personally take home.” It’s more like the remaining business income after salary has been accounted for in Lettuce’s planning model.

Also, adjusted income is not the same as your final owner’s profits. In that same financial preview:

Adjusted income: $88,162.96
Owner’s profits: $9,651.46
Total income: $36,340.47

That’s why the adjusted income number can look high — it’s an intermediate planning number, not your final spendable amount.

If you want, I can also walk you line by line through how Lettuce gets from gross income to adjusted income to owner’s profits.

What were my last three transactions in my Chase credit card account?

Based on your transaction history, I’m not seeing a Chase credit card account identified in the activity data I have access to right now.

What I can see are your most recent transactions overall, and they’re tied to your Lettuce-linked accounts like Primary Checking and Salary & Taxes — for example:

Jun 24, 2026: $1,000.00 debit to Robinhood Checking, labeled Shareholder Distribution
Jun 23, 2026: $1,000.00 debit to Global Carry LLC, labeled PAYMENT
Jun 22, 2026: $388.00 debit, labeled 40.00% withholding

If you mean a specific connected account that isn’t clearly labeled as Chase in the data, I can still help narrow it down if you tell me which account nickname or last 4 digits you mean.

What connected accounts do I have?

Here are the connected accounts I can see in your account:

Business accounts

Primary Checking ending in 8145
Salary & Taxes ending in 8144

Older or secondary business accounts

Primary Checking ending in 3091
Salary & Taxes ending in 7445

Personal connected accounts

Robinhood Checking ending in 9673
U.S. Bank checking ending in 9178

External/manual accounts

Sandi Bannister ending in 9178
Sandi Bannister ending in 9178
Lynn Zhan ending in 1335

A couple quick notes:

I do not see a Chase account in the connected accounts list right now.
There appear to be two separate external accounts both named Sandi Bannister ending in 9178.

If you want, I can also separate these into “currently active Lettuce banking accounts” versus “personal/external payout accounts.”

AI can make mistakes. Check important info.