Which of the following would be likely to establish a Simplified Employee Pension (SEP)?

A Simplified Employee Pension (SEP) is a type of retirement plan that is specifically designed for small employers and self-employed individuals. This plan allows employers to make contributions to their employees' retirement accounts in a relatively easy and straightforward manner.

Small employers benefit from SEPs because they typically have fewer employees and administrative costs compared to large corporations, making it easier to manage the plan. The flexibility in contribution levels and the lack of complex administrative requirements make SEPs an attractive option for small businesses looking to offer retirement benefits without significant overhead.

In addition, SEPs allow for larger contributions relative to the employee's income, which can be beneficial for employees at small companies to build their retirement savings. Thus, the characteristics of a SEP align well with the needs of smaller employers who want to provide retirement benefits while minimizing complexity and costs.