An Employer for 2021 operates as an S corporation and is expected to have income before taxes
of $800,000. That is the taxable income that will be reported in the 1120S tax return of the corporation

Employer has two employees the owner age 51 who will make $ 150,000 in salary and another employee age 55
who makes $ 60,000. The owner contributes $ 16,500 to his SiMPLE IRA and the employee $4,000 to his SIMPLE IRA

What is the maximum matching Simple IRA contribution the employer
can make?
1. Is it 3% of $150,000 = $4,500 for owner/employee and 3% of $60,000 or $1,800 for employee