Contribution Deduction Limit for Self Employed Cross Tested

[jkharvey]

I know this topic has been discussed over and over, but I'm not finding my exact answer. The plan is cross tested, so to pass gateway and general test, the Self Employed owner can receive a contribution that exceeds 25% of his Net Earnings from Self Employment. The total contribution to the plan is less than 25% of compensation when considering compensation for the SE owner and 2 other employees/participants. Is the Self Employed owner limited to a 404 deduction of just 25% of his Net Self employed income (this would be the same as 20% of his Schedule C minus 1/2 SE tax but not his contribution)?

Thank you.