That's possible., but it seems more likely that the employer contribution that was entered (if not using the Maximize function) was more than permissible, particularly since there was mention of the overall $58,000 limit. If the resulting tax liability of $12,000 ended up being entirely self-employment taxes, that implies a net profit of around $78,000 which seems to suggest that there would be some amount of income tax remaining. It would take something like $44,000 of losses outside of the business to bring taxable income to zero. The suggested $13,000 employer contribution also might be indicating net profit of around $78,000, and if taxable income is low enough to be in the 10% or 12% tax bracket, that would put the tax savings from a $13,000 deductible employer contribution somewhere between $1,300 and $1,600.
