If you do a search you will find an explaination about using G41 / G43 that was posted by Graham.
You could also use one of the wizards and try an inside, outside , and on line cut of simple shape and compare the Gcode.
There are a few rules that apply to compensation as to how it is programmed.
You may also want to consider purchasing a book on programming written by Smid.
If you were to cut completely around the S and the offset used left say .005" uncut for the letter , then the S would be .005" thick and true in shape about the center of the width.
RICH