I know an employer cannot use the 1,000/last day rule for safe harbor contributions, but does the reg. 1.410(B)-6(f) which allows employers not to contribute to terminating employees with less than 500 hours apply to the safe harbor match/nonelective contribution? If so, employers who match on a payroll basis may give more matching contribution than is required. Or, do employers have to give the safe harbor contribution for all eligible employees even if they terminate?

The safe harbor contribution can not have any qualifying requirements. If the safe harbor contribution is a match, any participant who defers is entitled to the match, regardless of hours or termination. If the contribution is the 3% non-elective, then any participant is eligible for the contribution, there can not be any hours or last day requirement.