SARSEP Contribution and Deduction Limits

[Lynn Campbell]

In a small SARSEP one NHCE defers 12% of pay. The SARSEP is deemed top heavy, so 3% must be contributed for each non-key employee. This puts our NHCE who defers 12% at the 15% limit for contributions. Does this mean that no additional "Employer contributions" may be made on behalf of the HCE, whose only contribution is a $10,500 deferral? He is at $170,000 compensation limit. My other question: is the 15% limit on contributions for each employee computed as 15% of gross wages including salary deferrals, or 15% of gross wages minus salary deferrals? Thanks for all help on this matter.