Enrolled Agents Salary: Getting a run for their money

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.

What is an enrolled agent’s salary?

But in the long term, corporate salary caps and geographical constraints often limit CPAs’ salaries. So, an enrolled agent in the right region who builds up a great interstate reputation and client base can certainly out-earn CPAs in the same area. Therefore, because the CPA is a state certification, not a federal one, a CPA may want to earn an enrolled agent designation as well to expand her credentials and earning potential. Of course, the more experience you have, the more an employer will be willing to pay you. Consequently, entry-level positions start on the low end of these ranges, while senior positions claim the highest salaries.

• The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there.
• CPAs are qualified to perform more specialized tasks, such as auditing and consulting.
• A bookkeeping expert will contact you during business hours to discuss your needs.
• As of October 2021, the Bureau of Labor Statistics (BLS) recorded the national median salary for CPAs in the U.S. as $73,560.

How long does it take to study for the Enrolled Agent Exam?

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.

Enrolled Agent salary

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 how much does an enrolled agent make 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.

Entry-level salaries for EA agents

They review and prepare tax returns for the business units and other taxpayers they are affiliated to. Enrolled Agents at this level are the financial problem solvers and tax managers of businesses. As the agent’s experience increases, the opportunities for salary upgrade also increase. What’s more, when an enrolled agent runs a small agency or brokerage that offers complete, specialized tax solutions for its clients, she can expand her earning potential even more. And, enrolled agent salaries are on the rise at larger firms and corporations, too. So, if you’re just starting out as an enrolled agent, you can expect to make somewhere between $30,000 and $40,000 annually.

How much does an EA earn?

There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. Based on a 2012 study, the tax workforce and revenue agents earned 27% less than accountants. It only goes to show that accountants have more chances of having bigger salaries and more prestige status than agents. But this doesn’t mean that agents are less capable than the accountants.

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.

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.

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.

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.

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.