Who does everyone use for 401k plans for employee benefit? 16 employees. Talked with Fidelity. They charge a one time $500 setup fee and then it's $300/quarter. Employees are charged $25/quarter fees as well. Just seeing if this is reasonable or if I should shop around more.

I work for a larger software company and last year my fidelity 401K fees were $135.

I got my first 401k 30 years ago at a company about the same size.

Lots has undoubtedly changed in that time, but that first plan was just about fly by night. We got a printed statement of the account balance once a quarter with no detail. It was usually late. Rolling it over was a six month process of endless phone calls.

This is one place I would step up and get your employees a good plan, one on part on what they might expect from a larger company. They should have a variety of funds to select from so they feel they have some control over their finances.

401k plans are not cheap to set up or administer. If you want to go that route instead of a Simple IRA it's going to cost money. Theres a reason the Simple was created.

Any recommendations on someone to help set up?

Very happy with Sentry.

You have other cheaper options with a company that small, such has a SIMPLE plan. Just FYI

I know some RIAs who set them up for small companies but I doubt its cheaper than what you said Fidelity is charging unless they using it as a loss leader to pitch financial planning to your employees.

Simple is great. Maxes are a little lower. ROTH is an option with Simple but only recently.
I expect the only people that will care or know the difference are those maxing out the limits (probably less than 5% of Americans).