TAX ASSOCIATE: Duties, Skills, Career Path & 2022 Salaries

Tax Associate

Many people find tax regulations to be an impenetrable maze. Tax associates are recruited to assist clients in avoiding fines for errors or failure to meet tax responsibilities. They are in charge of creating tax statements for businesses or individuals, ensuring that everything complies with state and federal regulations. When it comes to being a Tax Associate, there is more to it than meets the eye. Did you know, for example, that they earn an average of $27.62 per hour? That equates to $57,449 each year! Between 2018 and 2028, the career is predicted to rise by 6%, creating 90,700 job opportunities across the United States. In this post, we’ll look at the duties of a tax associate, their salary, and how to become one. Continue reading…

What Do Tax Associates Do?

A tax associate ensures that their company’s finances are reported and tax paperwork is submitted in accordance with applicable rules and regulations. Tax associates are typically recruited as part of a team rather than working solo. The tax associate examines their company’s financial records to ensure that they are in accordance with the law (such as Internal Revenue Service requirements). They must also guarantee that the company pays the correct taxes on payroll, income, investments, and property. To ensure that the necessary taxes are paid, the tax associate often has access to a wide range of corporate financial documents. They must be extremely organized in order to maintain track of these files, and they must adhere to any applicable firm privacy standards and privacy laws.

Taxation is a great vocation for those who are intellectually inclined. Tax consultants must be or learn to be effective communicators in order to convey complicated tax ideas in a simple and straightforward manner. It necessitates meticulous attention to detail, a high level of English and arithmetic, and a knack for problem-solving.

During ordinary business hours, tax associates often operate in an office setting. However, they may have to work overtime; for example, a tax associate may be forced to work evenings and weekends during hectic periods such as looming filing deadlines. Tax associates typically collaborate with accountants, tax aides, and other related financial experts in the office.

This employment normally requires a bachelor’s degree in accounting, auditing, or a similar field. A master’s degree in a relevant discipline may also be a requirement by larger firms. Certification as a certified public accountant (CPA) may be necessary or preferred.

Duties of a Tax Associate

  • Enter data and file taxes for clients using the software.
  • Tax paperwork must be collected, validated, and returned.
  • Ensure that deadlines, information requests, and legal requirements are met.
  • Research and explain tax facts, requirements, and paperwork, as well as provide advice.
  • Giving instructions & Training

Candidates for tax associate positions may be required to hold a bachelor’s degree in accounting or a related subject. Some firms, however, may prefer candidates with an MBA in accounting or finance, or equivalent professional credentials. Your most valuable talents on the job will be your ability to manage your time, great analytical and problem-solving skills, and knowledge of taxing software.

Statistics, economics, finance, and public administration are examples of courses that can be taken as part of a bachelor’s degree in accounting program. Accounting education program graduates should be able to:

  • Establish accounting information systems and tax preparation procedures correctly.
  • To prepare and file tax returns, use computers and specialized software.
  • Examine corporate and individual taxation, as well as trust and estate taxation systems.
  • Follow the most recent tax regulations and standards.

Online Tax Associate Courses You Might Like

#1. Payroll Accounting Financial Accounting

Payroll computations – federal income tax, social security, and Medicare – Payroll journal entries posted to ledger accounts…more details on Udemy

#2. Adjusting Entries & Financial Statements in Financial Accounting

Creating adjusting entries, uploading adjusting entries to a spreadsheet, generating financial statements from the trial balance…more details on Udemy.

#3. Tax Planning and Law 2022, 2021, 2020, 2019, and 2018

A Certified Public Accountant teaches income tax preparation Form 1040 and associated schedules (CPA)…more details on Udemy.

Tax Associates’ Job Prospects

Demand for tax experts can fluctuate depending on a variety of circumstances, including the overall strength of the economy, the implementation of the new tax, revenue, and financial rules, and changes to municipal, state, and federal budgets.

Tax associates with specialized training, professional credentials, or higher educational qualifications may have better job prospects. According to the Robert Half 2017 Salary Guide for Accounting & Finance, job candidates with tax experience are in high demand and earning higher salaries in the public accounting industry.

How to Become a Tax associate

One of the first things to consider if you want to become a Tax Associate is how much education you’ll need. We discovered that 56.1 percent of Tax Associates have a bachelor’s degree or higher. In terms of higher education, we discovered that 15.1% of Tax Associates hold master’s degrees. Despite the fact that the majority of Tax Associates have a college degree, it is feasible to become one with only a high school diploma or GED.

When exploring how to become a Tax Associate, choosing the correct major is always a vital step. When we looked into the most prevalent majors for a Tax Associate, we discovered that the most commonly receive Bachelor’s Degrees or Associate Degrees. Other degrees that we frequently find on Tax Associate resumes are Master’s Degrees and High School Diplomas.

You might discover that previous work experience will assist you to become a tax associate. Indeed, many tax associate positions require prior experience in a profession such as a cashier. In the meanwhile, many Tax Associates have prior work experience in positions such as customer service representatives or internships.

Pathways for Tax Associate Careers

As you advance in your job, you may find yourself taking on more tasks or assuming a leadership role. A tax associate can use the Zippia career map to decide their professional aspirations by following the career path. For example, they could begin with a role like staff accountant, advance to a title like an accountant, and eventually end up with the title assistant Controller.

Average Tax Associate Salary

Tax Associates in the United States earn an average salary of $57,449, or $28 per hour. The richest 10% earn more than $92,000 per year, while the bottom 10% earn less than $35,000 per year.

Based on 519 salaries, an entry-level Tax Associate with less than one year of experience can expect to make an average total salary (tips, bonus, and overtime pay) of $57,828. According to 1,169 salaries, an early career Tax Associate with 1-4 years of experience makes an average total salary of $59,317. Based on 124 salaries, a mid-career Tax Associate with 5-9 years of experience makes an average total salary of $64,644. Based on 37 salaries, an experienced Tax Associate with 10-19 years of experience gets an average total salary of $61,102. Employees in their late-career (20 years or more) earn an average total remuneration of $62,000.

What Are the Most In-Demand Skills for Tax Associates?

  • Tax Preparation
  • Tax Observance
  • Accounting
  • Excel by Microsoft
  • Tax Consultation

Above-average compensation is associated with skills in tax compliance and tax consulting. Microsoft Excel, Accounting, and Tax Preparation are examples of skills that pay less than the market rate.

Tax Associate Salary Influencing Skills

Your skills may affect your salary. Below is the list of the most prevalent skills and their impact on salary.

  • Technical writing: 19% Increase.
  • Legal Research: 18% increase.
  • Mergers and acquisitions: 10% increase.
  • Due Diligence: 7% increase
  • Tax consulting: 3% Increase
  • Financial reporting: 3% Increase
  • Statistical Evaluation: 3% increase
  • Data analysis: 2%
  • Tax Compliance: 1%
  • Research Analysis: 1%

Tax Associate Salary By Geography

Employees with the job title Tax Associate in New York, New York make 14.1 percent more than the national average. These job titles pay are more than the national average in Seattle, Washington (7.6 percent more) and Chicago, Illinois (7.0 percent more). Houston, Texas (2.8 percent less) and Philadelphia, Pennsylvania have the lowest salaries (1.9 percent less).

Best States For a Tax Associate

When it comes to launching a career as a Tax Associate, certain locales are better than others. Alaska, Rhode Island, Connecticut, and New Hampshire are the best states for someone in this position. Tax Associates earn the highest salaries in Alaska, with an average salary of $85,209. They would average $81,775 and $81,767 in Rhode Island and Connecticut, respectively. While Tax Associates earn an average of $78,939 in New Hampshire, they still earn more than the rest of the country. These are the best states in terms of job availability and income. We trimmed our selection of states to these four by looking at the median salary, cost of living, and utilizing the Bureau of Labor Statistics’ Location Quotient.

Tax Associate Employers

We’ve made it simple to locate a fantastic employer to work for by doing the legwork for you. We investigated employers that employ Tax Associates and identified the number of Tax Associate positions available as well as the average salary. Our investigation led us to the conclusion that H&R; Block was the best, especially with an average salary of $46,264. PricewaterhouseCoopers comes in second with an average salary of $67,505, followed by KPMG with a salary of $62,644. Furthermore, we know that the majority of people would prefer to work from home. Instead of changing careers, we found the top employers for remote work as a Tax Associate. Among the employers are Intuit, Experian, and KPMG.

  • Assistant Administrator – Salary Range: $30k — $58k
  • Office Manager – Salary Range: $35k – $71k
  • Finance Analyst – Average Salary $49,500 — $83,500
  • Payroll Accountant – Average Salary $41,000 — $661,000
  • Accountant – Average Salary $41,000 — $72,000
  • Customer Service Representative (CSR) – Average Salary $30,001 — $56,001
  • Data Analyst – Salary range: $45k — $87k
  • Senior Financial Analyst – Average Salary $65 – $104k
  • Senior Accountant – Salary Range: $55k — $88k

Is a Tax Associate Career Right for You?

Tax associates should be detail-oriented and good communicators with a wide range of skills, including critical thinking, decision-making, and problem-solving. Individuals with these characteristics who are drawn to the thought of dealing with numbers and tax regulations every day can prepare for a job as a tax associate by earning a bachelor’s degree in accounting.

Tax Associate FAQs

Is being a tax associate hard?

Being a tax accountant demands a lot of hard work in school, but the skills you learn can help you in many ways outside of the accounting sector. In fact, most effective tax accountants enhance their skills over time, implying that their education does not end after completing undergraduate school.

What's the difference between an accountant and a tax preparer?

A Certified Public Accountant (CPA) is a certified professional who has received additional education and training in a variety of accounting and business fields. For simple tax preparation, a licensed tax preparer does not need advanced degrees but must demonstrate proficiency by a formal exam or IRS employment.

Should I use a tax preparer or CPA?

If your tax situation is simple enough, you should utilize a tax return preparer because you will likely receive no additional value from utilizing a CPA and will most likely pay less to have your taxes completed. A tax preparer can take your numerous income items, enter them into tax software, and print them for you.

What is a career in tax like?

Taxation is a great vocation for those who are intellectually inclined. Tax consultants must be or learn to be effective communicators in order to convey complicated tax ideas in a simple and straightforward manner. It necessitates meticulous attention to detail, a high level of English and arithmetic, and a knack for problem-solving.

Leave a Reply

Your email address will not be published.

You May Also Like