I don't see how this applies to SE tax: "Employer exercises the claw-back provisions and claims $300K of back payment from TP for 2012 thru 2020."

The employer cannot claw back Self-employment income. The Employer can "dock wages" per the contract. That means the employee's share of SS and Medicare would be refunded from the Employer, the same as a cancelled, claw back bonus. The claw back is the Wage earnings, not the Sched C earnings, isn't it?

Read these scenarios for comparison: https://ttlc.intuit.com/community/taxes/discussion/re-the-repayment-must-be-more-than-3000-the-amoun...