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There are a few things here:

1) You are not considered self-employed. You are an employee of your corporation. You are taxed on your share of the S-Corp's income (in this case 100%) and you report that income on your personal tax return (Form 1040). The S-Corp's income is NOT subject to self-employment tax.

2) For 2000, the maximum SEP contribution for an employee is 15% of the employee's compensation or $30,000--whichever is less. However, if the employee's compensation is over $170,000, the maximum contribution for the employee is $25,500.

3) Here's the tricky part: In your situation, your compensation for determining your contribution DOES NOT INCLUDE YOUR SHARE OF THE S-CORP's INCOME. For S-Corp shareholders, only W-2 wages are considered qualifying compensation.

4) SEP contributions are not subject to regular income tax, but they are subject to self-employment taxes.

Hope this helps.
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