Note 13 - Employee Benefit Plans

12 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

13. EMPLOYEE BENEFIT PLANS

The Company has a defined contribution 401(k) plan which is available to U.S. employees after 30 days of employment. Employees may contribute up to the maximum allowable by the Internal Revenue Code. The Company voluntarily matches 75% of the employees’ contributions up to the first four percent of the employee’s eligible compensation. In addition, the Company can make additional contributions at the discretion of the board of directors. Participants are immediately vested in their employee contributions. Employer contributions vest 25% per year of service over four years of service. The Company’s contributions for fiscal years 2021, 2020 and 2019 were $2.2 million, $2.1 million and $2.2 million, respectively.

Various QAD foreign subsidiaries also contribute to defined contribution pension plans. Employer contributions in these plans are generally based on employee salary and range from 2% to 20%. These plans are funded at various times throughout the year according to plan provisions, with aggregate employer contributions of $4.1 million for fiscal 2021, $4.7 million for fiscal 2020 and $5.3 million for fiscal 2019.