Enrolled Agent Salary January 2024

enrolled agent salary

Large companies can afford to pay higher salaries to get the best employees. You may expect to make more money and have a clearer route to advancement with bigger companies. Managers in the office are responsible for coordinating the efforts of their employees across many projects. They are responsible for keeping upper-level executives up to speed on a broad range of tasks. A tax-savvy office manager is invaluable, especially in large companies with a large number of tax specialists on staff.

  • Managers in the office are responsible for coordinating the efforts of their employees across many projects.
  • The enrolled agent designation, which is given by the Internal Revenue Service, is recognized in all 50 states and grants these representatives full practice rights under federal law.
  • The employment market for accountants and financiers is expected to remain candidate-friendly in 2022, as reported by the Robert Half Pay Guide Opens in new window.
  • According to Payscale.com, entry-level EAs generally begin with a salary of about $52,000 per year.
  • Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”.
  • In addition to preparing taxes and providing advice, enrolled agents have permission to act on behalf of their clients in any and all dealings with the IRS.

Of course, having your own agency also removes any limitations on your salary. As per information provided by the Bureau of Labor Statistics (BLS), the median salary for CPAs stands at $78,000. You know if you are being paid fairly as an Enrolled Agent if your pay is close to the average pay for the state you live in. For example, if you live in Wisconsin you should be paid close to $59,000 per year. There are a number of perks that larger organizations may provide that their smaller counterparts simply cannot, and these perks include cafeterias, gyms, and childcare centers. Considering becoming an Enrolled Agent, but curious about the salary prospects?

Enrolled Agent Salary at a Non-Accounting Corporation

Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success. 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. 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.

And, with the increased convenience and reliability of telecommuting technology, a small firm can serve clients nationwide. For example, a small enrolled agent-run firm in rural Nevada could expertly serve clients in New York, California, or Alabama. Therefore, the ability to expand your client base beyond state borders is an advantage enrolled agents have over CPAs.

Entry-level salaries for EA agents

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 enrolled agent salary are in a great position to get their first accounting job. Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis.

enrolled agent salary

When it comes to jobs in accounting and finance, many people consider becoming CPAs, while few think about the option of becoming enrolled agents. With an increasing need for EAs across the nation, choosing to follow this career path can be both satisfying and lucrative. As of 2023, over 46,000 public accounting firms existed in the United States.

What Is An Enrolled Agent?

Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. In the Pacific Northwest, where tech and trees reign, Seattle enrolled agents earn anywhere from $49,275 and $68,692. However, San Francisco residents in enrolled agent positions earn a median income of $66,408, which is well above the national number. Of jobs posted in the city by the bay, nearly half pay above $125,000 annually.

Alaska pays Enrolled Agents the most in the United States, with an average salary of $74,649 per year, or $35.89 per hour. 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. It seems to reason that the median EA pay would be greater in a city with a larger population.

Gain relevant experience

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. This is just one of the many fantastic things about working for a public accounting company.

As an enrolled agent, you can provide services to your clients that other CPAs, bookkeepers, and finance professionals can’t. In addition to traditional accountants, a lot of mid-sized to large corporations benefit from hiring a full-time enrolled agent. Similar to having a corporate attorney, having an enrolled agent on staff helps many companies stay on top of their complex tax issues. 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. The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there.

Popular Companies for Enrolled Agent (EA) Certifications

Well, according to Salary.com, the national average salary for an enrolled agent is just over $53,126. However, actual EA salaries may vary quite a bit 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. Generally speaking, CPA salaries tend to be higher than enrolled agent salaries.

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