If a firm has fewer than 100 employees,which of the following is true?
A) It may not offer an ESOP.
B) It is not required to offer disability insurance.
C) It must match employee contributions to Federal income tax.
D) It may offer a SIMPLE defined contribution plan.

Question

Quizplus · Accepted Answer

If a firm has fewer than 100 employees, it may offer a SIMPLE defined contribution plan, which is a retirement savings plan that allows employees and employers to contribute to the plan. Offering an ESOP is not prohibited for small firms but it may not be feasible due to administrative complexities. An employer is not required to offer disability insurance as long as it complies with federal and state laws regarding discrimination. An employer is not required to match employee contributions to federal income tax.

If a Firm Has Fewer Than 100 Employees,which of the Following