Matching an employee's contribution is the most popular way of contributing to an employee's plan. Matching an employee's own contribution simply means that you agree to kick in additional money for every dollar the employee contributes to his own plan, usually within limits that you've set. Many businesses match employee contributions, either fully or partially. Though you're not legally obligated to match contributions, it's a very popular feature with employees, needless to say. You can set the formula of how much you want to match.
Most companies match between twenty-five cents and fifty cents on the dollar.
If you do decide to contribute, you can do so on a vesting schedule. That means your contributions become property of the employee over time. A vesting schedule is a tactic used by employers to encourage employee retention. If you put them on a vesting schedule, say of four years, the money that you've contributed gradually becomes theirs over time. Providers can be insurance companies, mutual fund companies, financial services companies, or third-party administrators.