Renee Tiffany

About Renee Tiffany

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IRS Audit report and calculator on a desk.

Payroll Mistakes That Trigger IRS Audits

It’s a fact of life that the IRS may audit your business tax return. Of course, not all audits mean that an error occurred. It may indicate that your company’s tax return contains information that does not align with similar businesses or industry standards. The IRS uses advanced algorithms to detect any anomalies in your tax return. If the IRS spots any inconsistences on your return, it is likely your company will be audited.

Here are some common IRS red flags that can trigger an audit and how to correct them:

Missing payroll deadlines for reporting and depositing federal payroll taxes for federal income tax withheld, Medicare or Social Security have the steepest penalties. The IRS imposes additional interest charges on the amount owed until the late deposits are paid. Setting a deposit schedule and monitoring IRS receipt for payment should negate this problem.
Late or incorrect returns can carry a substantial penalty. Failure to file correct informational forms such as employee W-2s or taxpayer ID numbers are likely to be audit worthy. To avoid this, use taxpayer ID number verification tools, reconcile totals to payroll registers and schedule a pre-deadline review to catch and correct any errors.
Misclassifying employees can trigger penalties, back taxes and audits. Identifying employees as independent contractors means bypassing payroll withholding and reporting. Consequences can include paying back taxes with interest for any discrepancies as well as future scrutiny. Use the Department of Labor contractor guidelines for clarity when classifying.
Using outdated income tax withholding tables will cause the IRS to sit up and take notice, leading to charging you penalties. Make sure to have new hires fill out federal and state W-4 forms to verify employment eligibility so you can accurately run payroll. Refer to the latest payroll tax tables and correct any employment taxes as soon as possible. Delaying corrections can trigger penalties, interest and audits.
Reporting incorrect wage and benefits calculations can result in paying significant civil or even criminal penalties. This could include incorrect overtime, misclassifying taxable fringe benefits or not paying bonuses or commissions. One way to avoid this situation and the hassle of an audit is to automate the process with payroll software.
Poor recordkeeping is another area that can trigger further investigation. This means keeping your payroll records organized and accurate if you are called in for an audit. The IRS requires employers to keep employee tax records for at least four years after the date the tax becomes due or is paid. The DOL directs employers to retain payroll records for at least three years and timecards for at least two years. Keeping all required records organized and accessible will help your company avoid disputes if you are audited.

Although the above can all help, your best protection against time-consuming and costly IRS actions is to work closely with payroll and tax professionals. They can guide you through the IRS’ good side.

Managers as Player-Coaches

Renee Tiffany Blog AI, Coaching, Staffing

As layoffs continue across Silicon Valley, many companies are simplifying their organizational structures and reducing layers of management.

Business leaders are increasingly telling managers that they should stay connected to their teams while also contributing directly to the work itself. Small-business owners are watching this shift closely.

Many are wondering whether managers can successfully balance leadership responsibilities with hands-on tasks such as answering customer emails, testing products and helping with daily operations while still setting the tone for accountability and a strong work ethic.

The rise of artificial intelligence-driven workplaces

Across the tech industry, there is growing pressure to fully integrate AI tools into everyday business operations. That transition is leading to smaller teams and leaner workplaces, with some projects relying on only one employee supported by AI software.

Because of this shift, managers are no longer expected to serve strictly as supervisors. More companies want managers who actively contribute alongside their teams rather than simply oversee projects from a distance.

Why companies want player-coaches

Businesses believe hands-on managers can help teams adopt AI tools more effectively. Managers are increasingly expected to participate in projects involving dashboards, analytics, workflow improvements and operational planning as employees learn how to use AI in their own roles.

Supporters of this model believe managers who work directly with employees can help speed up decision-making and reduce unnecessary delays.

A closer look at workflow problems

When managers actively participate in day-to-day operations, they often notice workflow issues they wouldn’t otherwise. Bottlenecks, communication gaps and inefficient processes become easier to identify when leadership is directly involved in the work itself.

This approach also influences hiring decisions. Companies are increasingly searching for employees who can adapt quickly, handle different responsibilities and work comfortably in changing environments.

Balancing leadership with hands-on work

Even though this model offers advantages, it also creates new challenges for managers. They are still expected to mentor employees, help guide career development and support team growth, while also contributing directly to projects.

Managers now have to find a balance between helping with the work and allowing employees to maintain ownership of their responsibilities. For many businesses, the expectation is that managers become both strategists and active contributors.

How smaller businesses could benefit

For smaller companies, the player-coach model can create more flexibility. Businesses with limited staff often need leaders who are willing to step into multiple roles depending on current demands.

A manager who understands both strategy and day-to-day operations can help a smaller business move faster and stay competitive with larger organizations.

Questions about whether the model works

Not everyone is convinced the player-coach model is realistic. Some critics believe that managers who are trying to achieve their own goals while also helping employees meet theirs could become overwhelmed.

There are concerns that constantly shifting between leadership duties and individual tasks might reduce overall performance rather than improve it.

The growing role of AI

AI is becoming central to this conversation because businesses are relying on automation to reduce workloads and improve efficiency. Many companies hope AI can help employees accomplish more without increasing staffing levels.

Still, introducing AI into the workplace creates another challenge. Employees sometimes worry that the same technology designed to help them could eventually replace parts of their job.

Managers are often expected to lead AI adoption while also addressing those concerns and maintaining trust among their teams.

Building trust during workplace changes

Supporters of the player-coach model argue that managers who actively use AI tools alongside employees can reduce resistance to change. Employees are often more receptive when leaders demonstrate how to use new technology directly rather than simply instructing them on how to use it.

Managers working in the trenches with employees also gain firsthand insight into what is slowing down teams and where improvements are needed. That level of involvement can encourage a workplace culture built around adaptability, accountability and collaboration.

The pressure on middle managers

The movement toward AI-supported teams reflects a larger trend happening across many industries. Middle managers are increasingly viewed as vulnerable during layoffs and restructuring efforts.

Those who remain are often expected to supervise larger groups of employees while also managing AI systems and contributing directly to operational work. This shift is dramatically changing what companies expect from those in leadership positions.

Rethinking the role of management

Managers are now expected to help employees learn how to work effectively with AI while assigning repetitive tasks to automated systems whenever possible.

Some major companies, including The Walt Disney Co. and JPMorgan Chase, are already tracking and rewarding employee use of AI tools.

At Disney, some technology employees reportedly have access to dashboards that monitor the use of AI programs such as Cursor and Claude. Businesses are placing increasing pressure on leadership teams to demonstrate measurable results from expensive AI investments.

More responsibilities for managers

Managers are now spending time identifying low AI usage patterns, building tracking dashboards and sharing practical ideas for how teams can use AI more effectively.

At the same time, many middle managers are already under pressure to accomplish more with fewer resources. Adding player-coach expectations creates even more demands on already stretched leadership teams.

Why direct feedback matters

Managers who work closely with employees are often more likely to receive honest feedback about what teams actually need. That information can help leadership determine where improvements are necessary.

In some cases, employees might need better training. In others, they might need clearer communication or fewer obstacles slowing down their work. All in all, businesses adopting the player-coach model hope that direct involvement will help managers identify these issues faster and improve overall performance.

Data Breach Concepts. Fingerprint with abstract data on digital screen.

Steps To Take After a Cyberattack

Renee Tiffany Blog Cyberattack

Unfortunately, many small-business owners come to the realization that hackers don’t only go after the “big guys.” It’s the “small guys” that are the easier targets. Small businesses are generally not financially prepared for an attack, with many lacking cyber insurance. After disaster strikes, many small businesses may find they have to close up shop altogether. Once the word gets out that a company has been hacked, more than half of their customers say they would be less likely to continue doing business with a company that was breached. It is imperative that small businesses do everything in their power to protect themselves from cyberattacks.

Experts advise mobilizing your breach response team to assess the severity of the cyberattack immediately after you discover the breach. The number of team members will depend on the size of your company.

After the analysis has been completed, experts will guide you as to what systems were affected and when they should be brought offline. As soon as possible, update credentials and passwords of authorized users, as the system will remain vulnerable until this step is taken, especially if the hacker stole your credentials.

If you segmented your network when you initially set it up, check to see that the breach did not migrate to another server or site.

Analyze the backup data and review logs to see who had access when the system was hacked, and plan to interview them for their insights. Remove any sensitive information that may have been posted on your website and check to see if that information appeared anywhere else online.

All states have enacted laws that require you to notify stakeholders of any security breaches that involve personal information. Contact your law enforcement agency and report the cyberattack. If your local police department is not equipped to handle a cyberattack investigation, then contact the FBI or the U.S. Secret Service.

During this process, public relations communications to all stakeholders must be positive. You want to send the message that the company is doing everything possible to remedy the immediate situation and to safeguard against future attacks. You want to rebuild trust with your stakeholders by being proactive. Immediately notify people through email, websites or toll-free numbers that their personal information has been compromised so that they can take steps to limit their exposure. Tell them what type of information has been hacked so they can contact the right organizations. For example, if Social Security information was stolen, people will need to contact the credit card bureaus and put a stop on their credit reports. Encourage people to go to https://www.identitytheft.gov/ and file a report.

Going Forward

Cyber resilience is an idea that is gaining momentum in terms of preventing cyberattacks. The premise is to build safeguards, assuming that a company will at some point be attacked. Once an assessment of what went wrong is completed, companies can take steps to make sure the attack does not happen again. Among best practices are upgrading software, changing passwords systemwide, putting a web application firewall in place, and checking to see that your website hosting company rectifies any security vulnerabilities. If your budget permits, hiring an outside cybersecurity expert may be a realistic next step.

AI Resume Screening System with Candidate Files

Using AI to Hire? Build In Compliance From the Start

Renee Tiffany Blog AI, Staffing

Used well, artificial intelligence can meaningfully augment talent acquisition, which is why so many companies now rely on it to make or inform decisions about applicants. But if your company is going to use these tools, you need to start by designing a compliant architecture — not layering on compliance after you’ve already chosen your tools and built your processes.

AI hiring is being actively regulated at the city, state and international levels. Common threads run across jurisdictions: transparency, human oversight, nondiscrimination and the right to explanation. While no U.S. state law outright bans AI in hiring, several states have enacted laws that effectively prohibit its use if it produces discriminatory outcomes. There are also regulations establishing requirements around notice, audits, impact assessments, data retention and appeal processes. Employers must meet these standards to use AI tools lawfully.

Regulators aren’t looking for checkbox compliance. Your company won’t be compliant simply by selecting an AI-powered screening tool, having it bias-audited, posting required notices on your careers page and building a human-review process. Beyond those steps, you must be able to prove that using the tool doesn’t lead to discrimination in hiring.

Algorithmic discrimination is hard to detect — and even if your company uses a tool built by a third-party vendor, your company is the liable party if the automated system creates a disparate impact on protected classes.

The Department of Labor has released workforce guidelines emphasizing AI literacy and advising meaningful human review of all AI-driven applicant screening. When operating in the AI and automated decision-making space, work with human resources experts and legal counsel.