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August 2017


by Andrew D. Schwartz CPA

it's only August 1st which means there is still plenty of time to do some reading before Labor Day.  Why not take this opportunity to read some business management books before life gets busy again in September? 

I'm pleased to share with you some of my favorites:

The Seven Habit of Highly Effective People, by Stephen Covey

The 7 Habits is actually much more than just a business book.  If you haven't read this classic yet, please do me a favor and read this book very soon.  Thanks to Stephen Covey, I now usually listen empathetically when conversing with others. 

The One Minute Manager, by Ken Blanchard and Spencer Johnson

A great business fable that spells out the three steps to being a great manager - taking time up front to explain the assignment, praising staff for doing things right, and reprimanding quickly and privately when necessary. Sounds simple, but the book really drives home these three steps.

Everything is Marketing: The Ultimate Strategy for Dental Practice Growth. by Fred Joyal

Fred Joyal, the founder of 1-800dentist, shares concepts that every professional, not just dentists, can learn from.  I definitely made a few changes to my CPA firm's client service after reading Fred's book.

The Millionaire Next Door: The Surprising Secrets of America's Wealthy, by Thomas J Stanley and William D Danko

A common sense approach to explaining why the people you'd never expect to be millionaires are actually the ones who are the millionaires living in your neighborhood.

One or more of Patrick Lencioni's Business Fables

Yes, I'm suggesting that you read business fables.   While the concept of a business fable might sound lame, Patrick Lencioni has written a bunch of fables that are both interesting and provide great management lessons.  Here are the ones I have read and enjoyed so far:

Great Insight Based On Research Studies Completed By Gallup

Managing people is a science, and Gallup has crunched the data to prove it.  Their recommendation is simple - figure out the strengths of each of your employees, and then put your employees in the best possible position to succeed.  The team at Gallup also suggests that you don't worry too much about fixing their weaknesses. Here are two books based on Gallup's research that I have read and enjoyed:

Let me know what you think

If you read any of these books and really love them and want to thank me for the recommendation, please email me at:

And I'd be interested in hearing your recommendations for business management books as well.  Frankly, I'd just love to hear from you whether you appreciate my recommendations or are giving me your recommendations.




Spend a half-day with us on Friday, October 20th and Improve your Practice Management Know-How!

In one afternoon, you’ll learn practical steps that can help you improve your Practice, including:

Session 1 (11:00 am – 12:30 pm ) offers:

  • Option A – H.R. TRAINING - HOW TO HAVE DIFFICULT CONVERSATIONS WITH EMPLOYEES with Laurie LaBrie, President/Integrated HR Team
  • Option B – PRACTICE MANAGEMENT TIPS AND BEST PRACTICES facilitated by Andrew Schwartz, CPA/Schwartz & Schwartz Partner, with quick but informative presentations from various professionals who support the dental industry

Session 2 (1:30 pm – 3:30 pm) offers:

  • Option A – OFFICE MANAGER TRAINING with Nancy Kagan and Marissa Thompson of Summit Dental Institute for Learning
  • Option B – QUICKBOOKS ONLINE TRAINING with a professional QuickBooks Online trainer

Friday, October 20, 2017

at Cafe Escadrille
26 Cambridge Street, Burlington, MA
Includes a Delicious Complimentary Lunch

Register today for our FREE dental client event
~ CE available ~ Lunch included



by Michael Bohigian CPA

Students and teenagers often get summer jobs which can be a great way to earn extra spending money or to save for later. Here are some additional top tips from the IRS for people with summer jobs:

  • New Employees. When a person gets a new job, they need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from the employee’s pay. The IRS Withholding Calculator tool on can help a taxpayer fill out the form.

  • Withholding and Estimated Tax. Students and teenage employees normally have taxes withheld from their paychecks by the employer.  Some workers are considered self-employed and may be responsible for paying taxes directly to the IRS. One way to do that is by making estimated tax payments during the year.

  • Self-Employment. A taxpayer may engage in types of work that may be considered self-employment. Money earned from self-employment is taxable. Self-employment work can be jobs like baby-sitting or lawn care. Keep good records on money received and expenses paid related to the work.  IRS rules may allow some, if not all, costs associated with self-employment to be deducted. A tax deduction generally reduces the taxes you pay.

  • Tip Income. Employees should report tip income. Keep a daily log to accurately report tips. Report tips of $20 or more received in cash in any single month to the employer.

  • Payroll Taxes. Taxpayers may earn too little from their summer job to owe income tax. Employers usually must withhold Social Security and Medicare taxes from their pay. If a taxpayer is self-employed, then Social Security and Medicare taxes may still be due and are generally paid by the taxpayer, in a timely manner.

  • Newspaper Carriers. Special rules apply to a newspaper carrier or distributor. If a person meets certain conditions, then they are self-employed. If the taxpayer does not meet those conditions, and are under age 18, they may be exempt from Social Security and Medicare taxes.

  • ROTC Pay. If a taxpayer is in a ROTC program, active duty pay, such as pay for summer advanced camp, is taxable. Other allowances the taxpayer may receive may not be taxable, see Publication 3 for details.

One great long-term retirement saving vehicle for a teenager would be a Roth IRA.  Someone can invest the less of $5,500 or the amount of compensation earned during the year into a Roth IRA, and all the earnings grow tax-free to be withdrawn tax-free upon retirement.  As a simple illustration, a $4,000 contribution to a Roth IRA compounding annually at 10% would be worth $181,037 in 40 years!




Income Taxes

Saving and Investing





  • Returns on extension are no longer due 8/15.  For 2017, you have until 10/16 to file returns that have been put on extension.


  • Consider rolling your old retirement accounts held at a previous employer into your current employer's 401(k) or 403(b) plan to consolidate your finances
  • If your income will be too high for 2017 to contribute to a Roth IRA this year, consider making a non-deductible contribution to an IRA to convert to a Roth before December 31st.


2016 & 2017 TAX FACTS

  • For 2016, the standard deduction for a single individual is $6,300 and for a married couple is $12,600. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses.
  • For 2016, the personal exemption is $4,050. Individuals will claim a personal deduction for themselves, their spouse, and their dependents. 
  • The maximum earnings subject to social security taxes is $127,200 for 2017, up from $118,500 for 2015 and 2016.
  • The standard mileage rate is $.535 per business mile as of January 1, 2017, down from $.54 for 2016.
  • The maximum annual salary deferral into a 401(k) plan or a 403(b) plan is $18,000 in 2015, 2016 and 2017, up from $17.5k in 2014. And if you'll be 50 or older by December 31st, you can contribute an extra $6,000 into your 401(k) or 403(b) account this year.
  • The maximum annual contribution to your IRA is $5,500 for 2014 through 2017. And if you turn 50 by December 31st, you can contribute an extra $1,000 that year. You have until April 15, 2017 to make your 2016 IRA contributions.


Need Help With Your Nanny Payroll?

This Month's Topics

Andrew's Summer Reading Recommendations

Save the Date for the Annual Dental Practice Management Summit Offered By MDTAXES And Schwartz & Schwartz PC To Be Held October 20th

Tips For Teenagers With Summer Jobs

The FICA Refund for Medical Residents

2016 & 2017 Tax Facts

Tax and Financial Planning Calendar for August 2017


Browse our index of previous months' newsletter topics

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In a shocking development, the IRS recently announced that they will be honoring the FICA tax refunds submitted by residency programs and individual doctors. The catch is that only FICA taxes paid prior to 4/1/05 qualify.

For more information, go to our April 2010 Newsletter, our January 2009 Newsletter, or our February 2001 Newsletter or read through the IRS' Chief Counsel Advice Memorandum on this issue.

Let's work together to keep current on this hugely valuable tax break. Please post whatever you read or hear regarding this FICA issue on our new Message Board we set up just for this topic.


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