Basically, you have three options for safe harbor contributions: (1) Basic match; (2) Enhanced match; or (3) Non-elective. With the basic match, the company matches up to 4% of eligible employee pay in tiers. You match 100% on the first 3% employees contribute, plus 50% match on the next 2% they defer. For example, if an employee earns $50,000 and saves 4% of their pay ($2,000), you will first match 100% of the first 3% they saved ($50,000 x 3% x 100%=$1,500) plus 50% on the next 1% they save ($50k x 1% x 50%=$250). The total match would be $1,750 ($1800 + $300). Great for Companies on a budget that expect low participation. With an enhanced match, the company matches at least 100% of the first 4% that employees contribute. You can increase your match rate as high as you’d like (e.g., 200% of employee contributions) but you can’t require employees to save more than 6% of their pay to get the full match. Enhanced matches are great for companies looking to attract and retain top talent. With a nonelective Safe Harbor, the company contributes 3% or more of each employee’s pay, regardless of whether or not the employee saves in the plan. For example, if an employee makes $70,000, you will have to contribute $2,100 even if they don’t save anything in the plan. A non-elective is great for companies on a budget that expect high participation or owners that want to maximize tax-savings by adding a profit-sharing plan.