Moore & Associates PC issued the following announcement on Sept. 9.

Applicable wages refer to wages paid to employees during the period September 1, 2020 through December 31, 2020. The payroll tax deferral only applies to an employee's taxable wages that are less than $4,000 during a bi-weekly pay period (approximately $104,000 per year) or the equivalent threshold amount with respect to other pay periods.

An employee earning $50,000 a year will owe approximately $1,073 in deferred taxes next year while one making $104,000 will owe $2,232.

No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.

The determination of applicable wages is made on a pay period-by-pay period basis. For example, if the amount of wages or compensation payable to an employee for the pay period is less than the corresponding pay period threshold amount, then that amount is considered applicable wages for the pay period, and the relief applies - irrespective of the amount of wages or compensation paid to the employee for other pay periods.

 Original source can be found here.