Tax associates assist individuals and businesses with federal and state income tax compliance and preparation. These professionals, also known as tax preparers or tax specialists, often work for financial services companies and accounting firms, although some work as self-employed independent contractors.
Launching a career as a tax associate requires both education and experience. The online Bachelor of Arts (BA) in Business Administration – Accounting program from Florida Institute of Technology offers aspiring tax associates a convenient, accelerated path to the education needed for this unique career.
Job Outlook for Tax Associates
Demand for tax professionals can vary based on several factors, including the strength of the overall economy, the introduction of new tax laws, revenue and financial regulations, and changes to local, state and federal budgets. As businesses and individuals need help with taxes every year, tax associate jobs are generally consistent and stable.
Tax associates can fall under a number of occupational groups, as categorized by the U.S. Bureau of Labor Statistics (BLS), such as tax examiners or accountants and auditors. According to BLS estimates, accountants and auditors will see employment growth of 6% between 2023 and 2033, while employment growth projections for tax examiners are somewhat slower.
In general, employment of tax preparers remained relatively stable for the past two decades. Employment opportunities may be brighter for tax associates with specialized training, professional credentials or advanced educational qualifications.
Tax Associate Job Description and Duties
Tax associate job descriptions vary according to the professional’s role within a firm or their services as an independent contractor. To generalize, tax associate duties include assisting in the preparation of corporate, partnership and individual tax returns and keeping clients or employers in compliance with Internal Revenue Service (IRS) regulations. Tax associates interview clients regarding income and expenses and review income statements, expenditure documentation, and other financial records.
These professionals seek to minimize clients’ tax liability using appropriate adjustments and deductions. Researching tax issues and providing related documentation are also regular tax associate duties.
Tax associates may use sophisticated tax preparation software and applications. Large businesses or organizations may hire tax associates to work in accounting or payroll departments, ensuring proper tax setups and deductions.
What Is a Typical Tax Associate Salary?
Numerous factors determine an individual’s earning potential, including work history and educational qualification. Regional market conditions, the type and size of employer, and seasonal work scenarios also impact the average tax associate salary.
BLS does not report tax associate salary data in specific. However, the following three job roles and salary ranges shed light on the earning potential for tax associates, according to 2023 data from BLS:
- Accountants and auditors: $50,440 – $137,280 (median $79,880)
- Tax examiners and collectors, and revenue agents: $37,690 – $107,660 (median $58,530)
- Tax preparers: $29,170 – $98,810 (median $49,010)
In general, recent bachelor’s graduates will start toward the lower end of a salary range but can increase their earning potential with additional professional experience and advanced educational credentials. Notably, tax preparation can often be seasonal work, a side job to regular employment, essentially meaning additional income during tax season.
Plus, tax associate jobs can provide excellent starting points for more advanced, lucrative career paths. For example, tax associate duties and responsibilities can prepare professionals to excel in higher-level roles as actuaries. According to BLS, the salary range for actuaries in 2023 was an impressive $75,380 to $209,310, with a median annual salary of $120,000.
How to Become a Tax Associate: Education and Training
Tax associate requirements generally include a bachelor’s degree in accounting or a related field. For advanced tax associate roles, some employers may prefer applicants with additional credentials, such as Certified Public Accountant (CPA) designation or a graduate degree in accounting or finance.
Coursework in a bachelor’s in accounting program will cover advanced accounting topics. An accounting-focused business administration program will also include courses on generalized business subjects like statistics, economics, finance, strategic management, human resources and marketing. These topics prepare students for tax associate careers as well as numerous cross-functional careers that rely on broader business knowledge, such as cost accounting manager, account manager or mergers and acquisitions specialist. Graduates of an accounting education program should be able to:
- Accurately establish accounting information systems and tax preparation procedures
- Use computers and specialized software to prepare and file tax returns
- Analyze corporate and individual taxation, trust tax and estate tax systems
- Adhere to the latest tax regulations and standards
Is a Tax Associate Career a Good Choice for You?
Tax associates are detail-oriented, effective communicators who possess a variety of skills, such as critical thinking, decision-making and problem-solving. Individuals with these attributes and an interest in navigating the complexities of tax law and processes may find job satisfaction as a tax associate.
Further, tax associate jobs can provide flexibility for those who wish to work for firms or independently. Professionals who value this degree of freedom in their working environment can prepare themselves for a career as a tax associate by attaining a bachelor’s degree in accounting from a reputable institution like Florida Tech.
Learn more about Florida Tech’s online BA in Business Administration – Accounting program.
