In addition to the EA salary, there are many benefits to becoming an Enrolled Agent. Yet, both paths to the EA also involve extensive background investigations. And, in addition to the standard background check, the IRS also investigates your personal tax history.
Entry-level salaries for EA agents
Consequently, entry-level positions start on the low end of these ranges, while senior positions claim the highest salaries. For example, in Phoenix, a senior tax consultant with an Enrolled Agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm. In the Pacific Northwest, where tech and trees reign, Seattle Enrolled Agents earn anywhere from $49,275 and $68,692.
Enrolled agent salary
Self-employed Enrolled Agents who operate their own accounting agencies can expect more earnings than their counterparts at large brokerages and corporations. At a median of over $53,000, the salary for an independent Enrolled Agent is not bad. Furthermore, when you consider the lack of an upper limit on your earning potential, the idea of self-employment becomes very attractive. In the right area, and with the right CARES Act book of business, an Enrolled Agent can do quite well working in self-employment. Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. Of course, the more experience you have, the more an employer will be willing to pay you.
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In most cases, Enrolled Agents compete with other tax professionals. However, some prefer to work for only one client or for a corporation or a smaller business. As you’ll see, each employment option for Enrolled Agents has its pros and cons. And, if you decide to work for a non-finance-related company as an Enrolled Agent, you can actually expect to earn a bit more. Typical salaries for accounting agencies were around the $50,000 mark. On the other hand, accounting jobs for enrolled agents at top corporations like Apple, Starbucks, FedEx, and GE typically pay between $60,000 to $80,000 per year.
- Your level of professional experience, and the expertise you’ve accumulated with it, plays a deciding role in your salary.
- At a median of over $53,000, the salary for an independent Enrolled Agent is not bad.
- For instance, Enrolled Agents with several years of experience may see higher salaries, reflecting their expertise and ability to handle complex tax matters.
- The first is by passing the Special Enrollment Examination (SEE), which has 3 parts.
- Cities like Bengaluru, Hyderabad, and Mumbai, which host many outsourcing hubs, offer higher pay packages.
- An enrolled agent’s salary ranges from $22,000 a year at the 10th percentile to $54,000 at the 90th percentile.
- You only need to pass the Enrolled Agent exam and obtain your PTIN to get started.
- If you’re considering becoming an Enrolled Agent, it’s important to understand the career path.
- Similar to having a corporate attorney, having an Enrolled Agent on staff helps many companies stay on top of their complex tax issues.
- And, if you decide to work for a non-finance-related company as an Enrolled Agent, you can actually expect to earn a bit more.
- One reason Enrolled Agent salaries across America are so widespread is that Enrolled Agents can hold various positions.
- Yet, in the mile-high city, over half of the EA salary figures posted are above $112,000 annually.
Unlike other non-enrolled tax professionals, an Enrolled Agent has special permission to perform legal services that other tax professionals cannot. The main service that distinguishes an Enrolled Agent from others is the ability to represent taxpayers. In addition to preparing taxes and providing advice, Enrolled Agents have permission to act on behalf of their clients in any dealings with the IRS. Lesser RequirementsCompared to the CPA credential, earning an EA designation is less strenuous. After passing the exam and the IRS background check, you can do tax preparation and client representation easily. The IRS designates EAs, but because they represent taxpayers before the IRS, Enrolled Agents cannot work there.
On the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff. One reason Enrolled Agent salaries across America are so widespread is that Enrolled Agents can hold various positions. Your education and experience level, as well as any other certifications you hold, also affect the size of your Enrolled Agent salary. And another factor that makes a significant difference is the type of employer for whom you choose to work.
Average Enrolled Agent Salary
Therefore, the EA salary range in that city is a little lower, with the enrolled agent salary average salary about $38,197 to $55,306. Enrolled Agents in Charlotte also earn less than the national average at about $42,295. In New York City, the average salary for an Enrolled Agent is above the national average, with NY EAs making over $51,000 on average.
For example, many small to mid-sized businesses prefer to outsource their accounting. So, having one person serve as both their tax preparer and their tax attorney appeals to these clients quite a lot. Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency. Therefore, as with the lion’s share of the small accounting agencies out there, specialization is key. Consequently, building a reputation as the tax expert in town (and the tax law expert) can really help your career. If you’re planning to start your own book of business, then earning the Enrolled Agent designation is a great way to differentiate yourself from the bulk of your competitors.
Relocate to another city
However, actual EA salaries may vary quite a bit (between $37,000 and almost $54,000) when you consider all the variables. For example, your years of experience as a tax professional will help you earn more. The size of the company and the scope of your responsibilities also affect your earnings. Some may be looking for a change in their career path while others want to boost their earning potential or learn more about tax law. The IRS’s Enrolled Agent credential grants you unlimited tax representation authority before the IRS.
A smaller step, but still one https://www.bookstime.com/ 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”. Download Becker’s FREE EA Exam Guide ebook to learn more about being an EA, career insights, and everything you need to know about the EA Exam and how to pass. It’s essential to take into account the cost of living expenses in your deliberations as well. Mid-level professionals can make $70,000 to $90,000 per year, depending on their experience and specialization.