It's your responsibility
to ensurethat you make the correct amount
of employer contributionsfor the eligible employees
in your SIMPLE IRA plan.
Failure to make the correct
amount of employer contributionis a common mistake.
employer contributionis either 2%
of an employee's compensation,regardless of whether they made
a salary deferral contribution,or a matching contributionequal to an employee's salary
deferral contribution --up to 3%
of the employee's compensation.
To avoid mistakes, the plan
administrator should be familiarwith the terms
of the plan documentand should make surethat the plan procedures ensure
compliance with its terms.