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. Enrolled agents hold federal licensure, which gives them a much broader jurisdiction.
Enrolled Agent Salaries for Senior Level
EAs prepare taxes, can stand in for you during an audit, and handle other business you may have with the IRS. Once you get your first job, experience starts to include actual time working in the industry and your accomplishments at work. 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. Additionally, the EA credential is more client-focused, with a variety of career paths. Be sure to consider additional factors alongside salary when planning your professional path. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals.
Job Position
In order to sit for the EA exam, all that is required is a preparer tax identification number. After passing the exam and paying the necessary enrollment fee, candidates https://www.bookstime.com/ will then be required to pass a compliance check to ensure they have paid all their taxes. EA candidates are not allowed to have any outstanding tax liabilities.
How To Become An EA
Among the differences between these two careers is that certified public accountants are regulated at the state level. In order to become a certified public accountant, candidates are required to complete a minimum of 150 undergraduate hours. Although pursuing your CPA may look more profitable at first glance, thanks to the increasing demand for enrolled agents, the EA’s earning potential increases faster than the CPA’s. In as little as 4 years, EAs can earn the same amount as the average CPA if they are successful and take on many clients. Generally speaking, CPA salaries tend to be higher than enrolled agent salaries. However, the salary of a CPA will quickly exceed the salary pace of an EA.
Average Total Cash Compensation
- Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements.
- CPAs are state credentialed accountants who have passed the Uniform CPA Examination and met specific education and experience requirements.
- Agents with more than 20 years of experience may see a pay raise up to $60,000 per year.
- Candidates who have a sufficient amount of work experience, according to IRS guidelines, may not even be required to take the exam.
- The average Enrolled Agent Salary in The United States is $56,000 per year.
An entry-level enrolled agent with up to five years of experience can typically expect to earn an average of $42,000 per year. The Internal Revenue Service, in an effort to satisfy legal requirements, confers the status of enrolled agent to qualified candidates. An individual who has been certified as an enrolled agent is then allowed to serve as an intermediary for private businesses and citizens in relation to tax questions and disputes.
Part Time Staff Accountant
For example, daycare can be a considerable expense for young working families. On-site daycare could save thousands of dollars and dozens of hours in commuting each year. At the same time, some people dislike the bureaucracy that comes with larger organizations, and they’re happier at the end of the day if they have more freedom to pursue their own ideas. 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. Bookkeepers ensure that a business makes the most economically viable and safe decisions to keep finances tight and under control. This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers. A smaller step, but still one in the direction of earning more for your expertise, is completing the Annual Filing Season Program.
- Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”.
- After Congress passed the income law in 1913, the duties of EAs were expanded to include tax representation.
- Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS.
- Office managers oversee several ongoing projects at once and work with staff to ensure that operations run smoothly.
- To become an enrolled agent, the IRS requires a few straightforward steps.
- The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam.
How to increase your salary as a tax preparer
Unlike CPAs, enrolled agents become nationally certified, so they can practice in any state with the same certification. The average enrolled agent salary in Alaska, Wisconsin, and Washington are the highest in the U.S. The lowest average enrolled agent salary states are Virginia, Tennessee, and West Virginia. Enrolled agent salary is impacted by location, education, and experience. The average Enrolled Agent Salary in The United States is $56,000 per year. Salaries range from $44,900 to $73,600.The average Enrolled Agent Hourly Wage is $20.00 per hour.
- In as little as 4 years, EAs can earn the same amount as the average CPA if they are successful and take on many clients.
- 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.
- 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.
- Among the differences between these two careers is that certified public accountants are regulated at the state level.