Show Them The Money: Tax Manager Salaries

© 2012 by Aurelio Locsin.

Tax managers handle increasingly complex tax accounting for organizations. Their tasks can range from daily sales tax calculations to final yearly payments for federal income tax returns. They may work in-house, handling revenue matters for their hiring companies, or as consultants to companies that have no tax specialists on their staff.

Tax managers in senior management earned average salaries of $100,250 to $142,500 per year in 2012 according to the Salary Guide created by Robert Half International. This was for large companies showing at least $250 million dollars in annual company sales. For midsize organizations with $50 to 250 million dollars in sales, averages ran $79,500 to $110,750 per year. These financial managers prepared and reviewed federal and state income taxes, hired and promoted tax specialists, and recommended changes to operations to minimize tax liability. The position typically requires a bachelor’s degree in accounting or finance, a certification for Certified Public Accountant, and several years of management with increasing responsibilities.

In 2011, tax managers in line management averaged $83,250 to $114,750 annually in large companies, and $71,750 to $96,750 per year for midsize organizations. Aside from their tax reporting responsibilities, these accounting supervisors coordinated the activities of subordinate tax specialists. Managers assigned tasks and schedules; recruited, trained and fired employees; and monitored employee performance to ensure accounting goals were met. They also met with upper management about tax issues. A bachelor’s degree in accounting is the minimum entry requirement, though if they file reports with the Securities and Exchange Commission, they also need a CPA certification

Tax managers start their careers as accountants who specialize in tax matters.

• In 2011, they started with yearly averages of $42,750 to $53,500 in large companies and $41,500 to $51,000 in midsize companies.
• After three years of experience, they can handle accounting tasks with no supervision to earn a mean $50,000 to $67,250 per year in large companies and $47,500 to $61,750 per year in midsize companies.
• They could then become senior tax accountants who could head up projects and train new employees. Annual compensation at this level was $67,250 to $86,000 for large companies and $56,750 to $76,750 for midsize organizations.

The Bureau of Labor Statistics predicts that jobs for all financial managers, including those who are tax managers, will increase by 9 percent from 2010 to 2020. This is slightly more than the 7 percent growth seen for all management occupations, and slightly less than the 14 percent growth forecast for all jobs in all industries. ONET OnLine shows growth for supervisors, including line managers in tax accounting, at 10 to 19 percent. In both cases a growing economy caused by a growing population will fuel the demand. As with most management positions, competition will be strong because the number of qualified candidates will be less than the number of available positions. Those who understand international finance and its affect on U.S. taxes should have the best opportunities.