; and (B) taxes imposed by a State or local government on an employer with respect to amounts paid by such employer for work by employees. (b) Pandemic duty differential (1) In general There is established a schedule of pay differentials for covered duty as follows: (A) An employee is entitled to pay for that covered duty at the rate of basic pay, which includes any differential or other premium pay paid for regularly scheduled work of the employee other than the differential established under this section, of the employee plus premium pay of $13 per hour. (B) The total amount of premium pay paid to an employee under subparagraph (A) shall be— (i) with respect to an employee whose annual rate of basic pay is less than $200,000, not more than $10,000 reduced by employer payroll taxes with respect to such premium pay