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. 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.
Which U.S. City Offers the Highest Salaries for Enrolled Agents in 2024?
Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents. They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues. They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures. 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.
Average Enrolled Agent Salary
An enrolled agent with 0-2 years of experience earns an average entry-level salary of $21,082. A mid-career enrolled agent with 3-6 years of experience makes $35,171 a year on average. A senior level enrolled agent with 7-12 years of experience enjoys an average annual salary of $41,077. 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.
Similar Jobs to Enrolled Agent
- On the other hand, the smallest successful brokers and agents typically see less than a million dollars come through their doors each year.
- EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights.
- Offer more flexibility and greater access to management, giving individuals a greater say in the perks and fringe benefits available.
- 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.
In many cases, clients call upon the expertise of enrolled agents in complex tax situations where audits are likely. So, as the tax preparer, an enrolled agent is the most qualified to explain and defend the choices made during preparation. According to the 2024 Robert Half Salary Guide, hiring trends in accounting and finance continue to favor the job candidate. Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job.
Enrolled Agent Salary vs. CPA Salary
That works out to a 4% change in pay for enrolled agents over the last decade. 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.
Both EAs and CPAs have unique responsibilities, but an EA’s job is limited to taxation, while CPA’s have much broader responsibilities. To find out exactly what each EA exam Part covers, check out our breakdown on our About the EA Exam page here. Enrolled Agents are individuals that have passed the IRS Special Enrollment Exam (SEE) and completed all other requirements set out by the IRS. A bookkeeping expert will contact you during business hours to discuss your needs.
The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there. 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. 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.
Start studying today with Surgent EA Review — the smartest way to pass the Enrolled Agent exam — start your free trial today. 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. how much does an enrolled agent make I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites. 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.
They are knowledgeable about the tax code and can help individuals and businesses navigate complex tax laws. Compare enrolled agent salaries for individual cities or states with the national average. The highest paying types of enrolled agents are insurance broker, licensed insurance producer, and insurance producer. An enrolled agent’s salary ranges from $22,000 a year at the 10th percentile to $54,000 at the 90th percentile. The highest-paying cities for enrolled agents are Green Bay, WI, San Francisco, CA, and Southfield, MI.
In the right area, and with the right 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. An Enrolled Agent credential is the most prestigious status awarded by the IRS.
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. 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.