Imagine a situation where Taxpayer is sole owner of an S-Corp with an $80,000 salary and $10,000 in owner health insurance premiums paid by the S-Corp.  Per the IRS rules Box 1 of Taxpayer's W-2 will show $90,000 and boxes 3 and 5 will show $80,000.  But in determining the max SEP contribution of 25% of wages, do we base it on $90k or $80k?  Thanks in advance for any replies!