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Definition. A legal entity that controls and directs a servant or worker under an express or implied contract of employment and pays (or is obligated to pay) him or her salary or wages in compensation.
Employer Contributions. 1  Employer Matching Contributions are contributions that employers make into employees' SIMPLE IRA accounts that are equal to the employees' individual elective deferral contributions. 2  Employer Discretionary Contributions are contributions that employers make regardless of employees' contributions.