The AICPA is asking Congress to direct the IRS to waive payroll tax penalties after the sunset of the Employee Retention Credit (ERC). The ERC was previously available through Jan. 1, 2022. The Infrastructure Investment and Jobs Act ends the credit retroactive to Oct. 1. Due to the change, some employers may face penalties because they retained payroll taxes in anticipation of receiving the ERC. Affected businesses will need to pay back the payroll taxes they retained for wages paid after Sept. 30, the AICPA explained. Those employers may also be subject to a 10% penalty for failure to deposit payroll taxes withheld from employees unless the IRS waives the penalties.