Turn Healthcare Spending into Tax Savings & Wellness

A No-Net-Cost Benefit Strategy That Pays for Itself

Why SIMERP Now?

Rising Benefit Costs

Healthcare expenses continue to climb at 5-7% annually, placing significant strain on HR budgets and employer contributions. Most businesses are desperately seeking relief without cutting essential benefits.

Tight Labor Market

With With unemployment remaining low, employees have more leverage in demanding high-value benefits without corresponding wage increases. SIMERP helps you meet these demands without additional cost.

IRS-Approved Savings

Reduce employer FICA taxes by approximately $879 per employee per year through this fully compliant structure. This is not a loophole but a recognized tax planning strategy endorsed by tax professionals.

No Employee Pay Cut

Employees maintain their current take-home pay while gaining valuable wellness benefits. This creates a win-win situation where both the company and employees benefit without compromise.

What Is SIMERP?

SIMERP stands for Self-Insured Medical Expense Reimbursement Program—an IRS-compliant structure that transforms how your company provides wellness benefits while capturing significant tax savings.

This program works seamlessly alongside your existing health insurance offerings. It requires no change to your current insurance carrier or broker relationships, making implementation smooth and non-disruptive.

  • Reimburses employee-elected wellness benefits
  • Uses Sections 105(b), 106(a), 125, and 213(d)
  • Requires no change to your insurance carrier or broker

What You Save

$0
Annual savings per W-2 employee
$0
Annual savings with 50 employees
0 Days
Avg. implementation time

How SIMERP Works

Employee Election

Employees choose a wellness or MEC (Minimum Essential Coverage) plan on a pre-tax basis. This election is made through a simple digital interface that guides them through available options.

Employer Reimbursement

The employer reimburses these elected benefits through the SIMERP structure, creating the tax-advantaged transaction that forms the foundation of the program’s savings.

Tax Reduction

Payroll taxes are reduced for the business—but there’s no change in the employee’s actual paycheck. This creates immediate, measurable savings for your company.

Benefits Delivered

Guaranteed-issue wellness benefits are activated for employees, providing them immediate access to valuable health services without medical underwriting.

Employee Benefits

Wellness Without Cost

  • 24/7 telemedicine access for convenient healthcare
  • Prescription discount programs saving up to 80%
  • Urgent care network access with reduced fees
  • Guaranteed-issue benefits including critical illness, disability, and whole life insurance

No Health Questions

All wellness benefits are provided on a guaranteed-issue basis, meaning no medical underwriting or exclusions for pre-existing conditions. Every employee qualifies regardless of health status.

Digital Wellness Dashboard

Employees access all their benefits through a single, user-friendly digital platform available on both desktop and mobile devices for maximum convenience.

No Reduction in Take-Home Pay

Compliance You Can Trust

IRS-Compliant Structure

SIMERP is built on established tax code provisions including Sections 105(b), 106(a), 213(d), and 125. These sections have decades of precedent and Treasury guidance supporting their use for employee benefits.

Comprehensive Regulatory Compliance

The program meets all requirements for HIPAA, ERISA, ACA, and ADA compliance. Our legal team continuously monitors regulatory changes to ensure your program remains compliant as laws evolve.

Audit-Ready Documentation

Every implementation includes complete plan documentation and a properly structured Section 125 cafeteria plan. All documents are maintained in an audit-ready format with secure digital access.

Simple 6-Step Implementation Process

Submit Employee Census

Provide basic demographic information about your workforce. No sensitive health information or extensive data collection is required—just standard employment details already in your HRIS system.

Receive Custom Proposal

Our team analyzes your specific situation and creates a tailored implementation plan with projected savings calculations and benefit options customized for your employee population.

Execute Agreement

Once you approve the proposal, our legal team prepares all necessary documentation for your review and signature. Standard agreements can be executed electronically for convenience.

Payroll Integration

Our implementation specialists work directly with your payroll department or provider to set up the necessary coding changes. We integrate with all major payroll systems, including ADP, Paychex, and Gusto.

Begin Saving Immediately

Tax savings begin with the first payroll cycle after implementation. Employee benefits activate simultaneously, creating immediate value for both the company and the workforce.

Ongoing Compliance Monitoring

Our team provides continuous oversight to ensure your program remains compliant with changing regulations. Annual reviews maintain optimal performance and capture any additional savings opportunities.