"put the 8500 for 2 employees sch c pension line it completely changes the max amount for owner"

Of course it does.

Are you confusing a worksheet computation that is his own Contribution, with the amount he will be paying to the benefit of the Employees? These amounts go in different places.

The amounts on behalf of an employee are part of Business Expense as Retirement and Benefit package expense. That will create a Net Income for the employer, and as Sched C, that then creates the amount to be used to compute his own qualifying contribution. The owner's amount is computed differently.

For employees:

"Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

1. 25% of the employee's compensation, or
2. $61,000 for 2022 ($58,000 for 2021 and $57,000 for 2020)

Note: Elective salary deferrals and catch-up contributions are not permitted in SEP plans."

For employer/owner:

"When a sole proprietor figures deductions for SEP contributions, the IRS notes that compensation equals net earnings from self-employment, which takes into account the deduction for one-half of self-employment tax as well as the deduction for contributions to the SEP-IRA."