SIMPLE - 2% Contribution 

SIMPLE plan allows employees to make elective contributions to an individual retirement account (IRA). Employee contributions must be based on a percentage of their compensation and cannot exceed $7,000 per year (which is indexed for inflation). The employer would have to satisfy one of two contribution formulas:

Under the matching contribution formula, the employer generally would be required to match employee contributions dollar-for-dollar up to 3% of each participating employee's compensation.

Instead of making matching contributions, the employer could elect to make a 2% contribution on behalf of each eligible employee who earns at least $5,000 in compensation for the year.