Becoming an EA is one of the best investments you can make in your career as a tax preparer. The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam. In addition to the salary benefits, you’ll also enjoy increased representation rights so you can expand your client base and the services you can offer. Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics.
- Offering excellent job security and the opportunity to have jurisdiction throughout the United States, the position of enrolled agent can provide a good salary along with a rewarding career.
- As of February 2023, ZipRecruiter.com has the national average salary for CPAs as $77,370.
- However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete.
- They must stay up to date on a wide variety of projects and report directly to higher-level executives.
- However, actual EA salaries may vary quite a bit (between $37,000 and almost $54,000) when you consider all the variables.
Example #2
As of 2024, over 86,000 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 enrolled agent salary competition. The largest firms in the country pull in billions of dollars in revenue annually and employ tens of thousands of people. On the other hand, the smallest successful brokers and agents typically see less than a million dollars come through their doors each year.
What is the cost of the Enrolled Agent exam?
So, to determine how lucrative a career as an Enrolled Agent can be, use this information to learn more about the Enrolled Agent salary. According to the BLS, the lowest earners for enrolled agents and related professions earned about $37,690 per year in 2023. Meanwhile, at the other end of the spectrum, the highest earners made about $107,661 annually.
Average Total Cash Compensation
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. If your goal is to work at one of the Big 4 accounting firms, the Enrolled Agent designation is one way to stand out from other applicants.
Special Enrollment Exam (EA Exam) vs CPA Exam
- Salary.com reports that pay typically ranges from $40,237 to $48,953, with most professionals earning between $37,166 and $53,818.
- They also need to meet the continuing education requirements, which should be 72 hours every 3 years or 16 hours every year.
- However, senior-level professionals have a very lucrative pay scale, which may go up to $132,000 annually.
- 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.
But a minimum of five years of experience is required for this kind of salary structure, which comes with huge responsibility. Both certified public accountants (CPAs) and enrolled agents (EAs) must adhere to strict ethical standards. 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. In general, the EA’s job is to help their clients with a variety of tax matters, from tax preparation, to representation during hearings or conferences, to helping them through audits.
As of April 01, 2025, the average annual salary for an Enrolled Agent in the United States is $43,609. Salary.com reports that pay typically ranges from $40,237 to $48,953, with most professionals earning between $37,166 and $53,818. CPAs can also be found in a variety of environments from large public accounting firms to local firms. CPAs, like EAs, can easily start their own small business working with clients.
What’s more, Enrolled Agents often fill the roles of both tax accountant and tax attorney. 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. No matter which career path you decide to take, you’ll be an elite professional in the field of accounting. Weighing every factor, such as salary, lifestyle, and adherence to your personal values will help you make the right choice for a career that provides both comfort and fulfillment.
Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS. For this reason, an enrolled agent must also be well organized and capable of meeting reporting and filing deadlines. In order to work as an enrolled agent, candidates must receive the proper certification from the Internal Revenue Service.
This in turn makes you a more popular choice compared to your peers when it comes to a potential client looking for a tax professional. The Special Enrollment Examination, or Enrolled Agent Exam, consists of three examinations. Before we compare salaries, we should note that EAs and CPAs don’t necessarily perform the same job. In such a case, it is crucial to determine the amount of tax that the taxpayer has to pay. Here, the agent would decide this based on the rules of taxation in the US. Yet, both paths to the EA also involve extensive background investigations.
About This Data
While salary is an important consideration, the EA role offers distinct advantages. EAs provide specialized tax expertise that is essential for individuals and businesses navigating complex tax situations. This expertise, while potentially commanding lower salaries than the broader CPA role, remains highly valuable in the financial services sector. As in many professions, more years in the field typically correlate with higher earning potential. New EAs may start at lower salaries compared to experienced practitioners, but can expect increases as they gain expertise. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals.
The enrolled agent course offers a wide range of services to clients, quite close to the level of a Certified Public Accountant (CPA) and lawyer. However, they do not require the permission of the state board or any license from them to operate. 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. Therefore, while CPAs do earn more on average than enrolled agents in the short run, the potential for earnings over the span of a career can be higher for enrolled agents.
Furthermore, when you consider the lack of an upper limit on your earning potential, the idea of self-employment becomes very attractive. 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. In the Pacific Northwest, where tech and trees reign, Seattle Enrolled Agents earn anywhere from $49,275 and $68,692.
As part of an EA’s job responsibilities, he or she often develops a strategy for handling matters with the IRS. In this capacity, enrolled agents work to reach satisfactory agreements regarding plans, payments, estimations, and settlements. Due to the fact that this type of work can be quite complex, the job of an EA is often in high demand.
Yet, in the mile-high city, over half of the EA salary figures posted are above $112,000 annually. And while they say everything’s bigger in Texas, this statement doesn’t necessarily hold true for Dallas Enrolled Agent salaries. But the average EA salary in Dallas for jobs posted in the area pay between $36,674 and $53,100 annually. Based on compensation data that was included in job postings for enrolled agents dating back to September 2020, advertised salaries for enrolled agents have increased 21%. Having a clear understanding of earnings potential is important, especially if you are researching career paths or considering changing jobs. If you’re one of those people, and you’re curious what kind of salary enrolled agents make, you’ve come to the right place.