This material has been prepared for informational purposes only, and should not be relied upon for tax, legal, or investment purposes. BooksTime is not responsible for your compliance or noncompliance with any enrolled agent salary laws or regulations. Tax preparers work with taxpayers to complete federal and state tax returns. This job usually involves a busy season, with the highest workload occurring from December to mid-April.
- The National Association of Enrolled Agents reports that there are more than 50,000 enrolled agents working in the United States as well as abroad.
- In this capacity, enrolled agents work to reach satisfactory agreements regarding plans, payments, estimations, and settlements.
- Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents.
- You can become an EA by obtaining a Personal Tax Identification Number (PTIN), passing all three parts of the IRS’s Special Enrollment Examination (SEE) and passing compliance and background checks.
- As the agent’s experience increases, the opportunities for salary upgrade also increase.
Enrolled Agents usually work more in businesses whose accounting needs are of microfocus. Entry-level tax preparers make less, but can expect their salary to increase after gaining several years of experience, and gathering more clients. If you’re applying for your first tax preparation job, your experience includes your education and any relevant extracurricular activities you participated in (such as the IRS’s VITA program). Once you get your first job, experience starts to include actual time working in the industry and your accomplishments at work. If you’re looking to speed up your salary gains in tax preparation, the best thing you can do is earn a professional designation, like the Enrolled Agent designation awarded by the IRS. Earning an EA confirms to clients the tax knowledge that you have, and keeps you up to date every year on any changes in taxation.
Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets. This in turn makes you a more popular choice compared to your peers when it comes to a potential client looking for a tax professional. Considering becoming an Enrolled Agent, but curious about the salary prospects? Take a look at our Enrolled Agent Salary Guide to get an idea about industry salary range.
While it is true that Enrolled Agents enjoy less income than professional accountants, a taxing job such as the Enrolled agents’ cannot be discounted after all. Becoming an enrolled agent can also provide a certain amount of career security. In the last few years, IRS examinations or audits https://simple-accounting.org/ have increased significantly. This means there is a far greater need for EAs today than in the past. Given the current rising number of examinations, more citizens have found themselves in need of representation. To a large degree, the job of enrollment agents is actually recession proof.
This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers. Completing the AFSP is not nearly as comprehensive as receiving an Enrolled Agent designation, and you do not have as many rights as an EA. However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete.
Another way to boost your salary and solidify your expertise is to become dual-certified. Whether you’re just getting started as an Enrolled Agent or are already a CPA wanting to specialize in tax, dual certification is the best way to help yourself stand out from the crowd. In general, CPAs earn more than EAs in all career levels; however, the CPA credential requires significantly more schooling, time and up-front costs than the EA credential.
Enrolled Agent Salaries for Senior Level
If your goal is to work at one of the Big 4 accounting firms, the Enrolled Agent designation is one way to stand out from other applicants. Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog. Office managers oversee several ongoing projects at once and work with staff to ensure that operations run smoothly. They must stay up to date on a wide variety of projects and report directly to higher-level executives. Especially in organizations that employ many tax experts, having an office manager with tax expertise is incredibly valuable.
This exam covers auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements. In some states, candidates must also work a certain number of hours under the direction of a CPA prior to being allowed to sit for the exam. This article is not intended to provide tax, legal, or investment advice, and BooksTime does not provide any services in these areas.
Average Enrolled Agent Hourly Pay
However, the salary of a CPA will quickly exceed the salary pace of an EA. This is because the income potential for enrolled agents tends to taper out over time. By comparison, a CPA can have a number of opportunities for earning money.
How to increase your salary as a tax preparer
For instance, CPAs working for conglomerates or in a CPA firm could easily bring in six-figure salaries. A senior-level enrolled agent with between 10 and 20 years of experience can typically expect to earn an average salary of $55,000. Agents with more than 20 years of experience may see a pay raise up to $60,000 per year.
Offering excellent job security and the opportunity to have jurisdiction throughout the United States, the position of enrolled agent can provide a good salary along with a rewarding career. The most highly specialized Enrolled Agent probably isn’t going to be earning as much at a smaller organization as they could at a larger one. Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents.
Estimate Salary for Enrolled Agent online for free
Certified public accountants do generally have more job opportunities due to the fact that they can work for private individuals, in the private sector, or for the government. Offer more flexibility and greater access to management, giving individuals a greater say in the perks and fringe benefits available. Start studying today with Surgent EA Review — the smartest way to pass the Enrolled Agent exam — start your free trial today. If you are considering making a career change or simply exploring career options in the accounting industry, one career choice you may be thinking about is becoming an Enrolled Agent (EA).
Gender Breakdown for Enrolled Agents
Individuals who are considering becoming enrolled agents should enjoy working with people and have high ethical standards. A smaller step, but still one in the direction of earning more for your expertise, is completing the Annual Filing Season Program. The AFSP is a yearly 15 to 18 hour continuing education program governed by the IRS. Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”. Individuals who are considering a new career path may find that becoming an enrolled agent is the right choice.
Beyond enrolled agent salaries, there are numerous advantages to becoming an enrolled agent. An EA is the only individual who has been the right to practice as granted expressly by the United States government. This type of license restricts their ability to practice to only the states where they have been licensed.
