Savings Incentive Match Plans for Employees of Small Employers (SIMPLE)
SIMPLE allows employers with no more than 100 employees to sponsor a retirement plan. Employees who are expected to receive at least $5,000 (and who did so in previous 2 years) are eligible to contribute through a deduction from their paychecks. They can receive an employer matching contribution of up to 3 percent of their pay. Employers may reduce that amount if business conditions vary from year to year. SIMPLE plans require few administrative burdens since the bank or financial institution receiving the funds does most of the paperwork.
Source: U.S. Department of Labor