Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. As of October 2021, the Bureau of Labor Statistics (BLS) recorded the national median salary for CPAs in the U.S. as $73,560. Jobs paying $58,500 or less are in the 25th percentile range, while jobs paying more than $83,000 are in 75th percentile. If you’re thinking about pursuing a career in the field, you may want to understand how compensation has changed over time for enrolled agents. The chart below provides a snapshot of advertised salaries over the past three years.
Degree Options for Enrolled Agents
While salary is an important consideration, the EA role offers distinct advantages. EAs provide specialized tax expertise that is essential for individuals and businesses navigating complex tax situations. This expertise, while potentially commanding lower salaries than the broader CPA role, remains highly valuable in the financial services sector. Different specializations, such as tax preparation or financial consultation, may command varying compensation unearned revenue levels. It’s important to consider one’s particular niche when evaluating earning potential. Having a clear understanding of earnings potential is important, especially if you are researching career paths or considering changing jobs.
Enrolled Agent Salaries By Experience Level
While this position is commonly filled by a CPA, the Enrolled Agent designation is a great way to secure your tax specialization. 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 Legal E-Billing takes much less time to complete. As per information provided by the Bureau of Labor Statistics (BLS), the median salary for CPAs stands at about $79,000.
- 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.
- For instance, corporations rely on Enrolled Agents to advise them on policy, prepare taxes, and represent them in audits and other proceedings before the IRS.
- For example, daycare can be a considerable expense for young working families.
- The average enrolled agent salary has risen by $3,188 over the last ten years.
Enrolled Agent Salary in Major Cities
- This job usually involves a busy season, with the highest workload occurring from December to mid-April.
- Their advisory services are recognized throughout the US and are very comprehensive.
- Compare enrolled agent salaries for cities or states with the national average over time.
- As of October 2021, the Bureau of Labor Statistics (BLS) recorded the national median salary for CPAs in the U.S. as $73,560.
- Working as an Enrolled Agent at one of the larger national tax firms won’t necessarily earn you as much as you might make at a more specialized regional or local brokerage.
Their advisory services are recognized throughout the US and are very comprehensive. Big cities have more job opportunities and a larger pool of skilled workers, but they also typically have a higher cost of living, so location isn’t everything. If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent. 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. But the fact that smaller firms have to specialize can be both a blessing and a curse for Enrolled Agents.
- However, senior-level professionals have a very lucrative pay scale, which may go up to $132,000 annually.
- Becoming an EA is one of the best investments you can make in your career as a tax preparer.
- Because Enrolled Agents have the authority to represent clients before the IRS, they can fulfill a more specialized niche than non-enrolled tax preparers and accountants.
- They are widely accepted anywhere in the US because of their high level of expertise, strong work ethics, and sense of confidentiality.
- EAs can also represent any tax matter, as well as appeal to any office of the IRS.
- The mid-level professionals may earn a little more than the above, which may again go up to $80,000 per year.
- This is a great time to go into accounting, and becoming an Enrolled Agent will help you land an even bigger starting salary than you could without it.
About This Data
Let’s assume that John has already cleared his EA exam and has experience in tax-related research, consulting, and preparation. He is also proficient in using taxation software, like Turbo Tax and QuickBooks. He has been working as an EA for 8 years, assisting clients with planning and audit in taxation and resolving disputes. Such agents have a very high status and are obliged to maintain the highest level of business ethics. They have the complete right to represent any kind of taxpayer and deal with any type of tax matters they choose to, without any restriction.
By considering these factors – experience, role, and location – one can better gauge potential EA salary ranges. However, individual circumstances may lead to variations in actual compensation. Enrolled agent salaries at IDEMIA and Acuity Insurance are the highest-paying according to our most recent salary estimates.
The duties of the enrolled agent for IRS can be categorized under three heads, personal, client, and duty to tax administration. Large firms are willing and able to pay a premium to attract top talent. The larger the company, the higher the pay for a given role, and the better defined your career path will be.
Optimizing Enrolled Agent Earnings: A Comprehensive Analysis
Based on 36% of postings with advertised compensation, the median hourly salary for open positions for enrolled agents in the United States is about $32. Because Enrolled Agents have the authority to represent clients before the IRS, they can fulfill a more specialized niche than non-enrolled tax preparers and accountants. Therefore, while CPAs do earn more on average than enrolled agents in the short run, the potential for earnings over the span of a career can be higher for enrolled agents. It has become a lucrative career option with a combination of technical expertise and oversight by the Federal government. The enrolled agent course offers a wide range of services to clients, quite close to the level of a Certified Public Accountant (CPA) and lawyer.
However, even after clearing the above, the agent must renew their status every three years. They also need to meet the continuing education requirements, which should be 72 hours every 3 years or 16 hours every year. They should review their credit chart frequently and keep updated contact information. It’s really a personal choice what size company you want to work for, but you should consider benefits that can affect your quality of life. Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets. Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization.