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 https://www.bookstime.com/law-firm-bookkeeping and $40,000 annually. Chicago’s median salary for enrolled agents is actually lower than that of the rest of the country, according to Payscale’s data. Current job postings in Chicago reveal an EA salary range from around $55,000 per year to over 6 figures. What’s more, the median pay for enrolled agents in Denver is in line with the U.S. median at almost $54,000.

Enrolled Agent Salary at an Accounting Firm

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Common Enrolled Agent salary ranges in the United States

• So, if you’re just starting out as an enrolled agent, you can expect to make somewhere between $30,000 and $40,000 annually.
• Because enrolled agents have the authority to represent clients before the IRS, they can fulfill a more specialized niche than non-enrolled tax preparers and accountants.
• The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there.
• As you progress in your career, your salary will naturally increase.
• Entry-level tax preparers make less, but can expect their salary to increase after gaining several years of experience, and gathering more clients.

The background check will consist of researching the candidate’s personal tax history. This is quite important considering the importance of ethics in this job role. The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA. As of 2023, over 46,000 public accounting firms existed in the United States. While that number is large, most of those firms are small agencies that handle relatively few clients compared to the big competition. The largest firms in the country pull in billions of dollars in revenue annually and employ tens of thousands of people.

Enrolled Agent Salary vs. CPA Salary

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 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.

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Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog. The most highly specialized Enrolled Agent probably isn’t going to be earning as much at a smaller organization as they could at a larger one. 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.

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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. 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”. Review a breakdown of entry level salary expectations by state here.

• Once you get your first job, experience starts to include actual time working in the industry and your accomplishments at work.
• Generally speaking, CPA salaries tend to be higher than enrolled agent salaries.
• Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”.
• Additionally, the EA credential is more client-focused, with a variety of career paths.