SIMRP Plans for Businesses
How SIMRP Plans Help Businesses
A Self-Insured Medical Reimbursement Plan (SIMRP) works alongside qualifying existing health coverage to provide participating employees and eligible dependents with valuable health and wellness benefits—without added out-of-pocket expense.
Through a properly structured payroll and reimbursement process, participating employers may reduce payroll tax expenses while eligible employees may experience an increase in take-home pay. Benefits can include tele-health, Prescription Drug support, mental health services, and preventive wellness resources.
HEALTH & WELLNESS WITH NO EXTRA COST
How a SIMRP Benefits Businesses
A SIMRP can help qualifying businesses strengthen employee compensation while improving payroll tax efficiency. When properly structured and administered, eligible medical reimbursements may be delivered on a tax-advantaged basis, and reduced taxable wages may lower the employer’s FICA obligations.
At the same time, participating employees and eligible dependents receive access to no-copay tele-health, mental health support, Prescription Drug benefits, and preventive wellness resources. The Plan works alongside existing health coverage and may support employee recruitment, retention, morale, and financial well-being.
EMPLOYEE BENEFITS, TAKE-HOME PAY & PAYROLL TAX SAVINGS
Potential Employer Payroll Tax Savings
Participation in a properly structured SIMRP may reduce an employer’s payroll tax expense when eligible pre-tax deductions lower taxable wages. Actual results vary based on employee eligibility, participation, wages, payroll structure, and Plan administration.
Based on current Plan projections, qualifying employers may save approximately $500 to $590 per participating employee annually. A free payroll analysis provides estimates specific to each organization; savings are not guaranteed.
PAYROLL TAX SAVINGS
How the SIMRP Is Funded
A SIMRP uses a coordinated payroll deduction and eligible medical reimbursement process. When properly structured and administered, the resulting payroll tax savings may help fund the Plan’s health and wellness benefits while supporting potential savings for employers and participating employees.
Watch the short video below for a plain-language overview of how the deduction and reimbursement process works. Actual results depend on Plan design, employee eligibility, participation, payroll structure, and applicable requirements.
FUNDING EMPLOYEE BENEFITS WITH TAX SAVINGS
Understanding SIMRP Laws and Tax Codes
Review the Internal Revenue Code provisions commonly associated with properly structured SIMRP Plans. This guide provides general educational information and is not a substitute for professional legal or tax advice.
Does Your Business Qualify?
A SIMRP may be appropriate for businesses with eligible W-2 employees who work full-time or meet the Plan’s full-time-equivalent requirements. Participating employees must also maintain qualifying existing health coverage.
The Plan must be properly structured and coordinated with payroll to support eligible deductions and medical reimbursements. Employee eligibility, participation, wages, existing coverage, and payroll structure can all affect projected results.
A free payroll analysis can help determine whether your business may qualify and provide an estimate of potential employer and employee savings.
BUSINESS ELIGIBILITY AND PLAN FIT
Request a Free Business Payroll Analysis
Discover which employees may qualify and review projected savings for your business and workforce. The analysis is free and carries no obligation.
Complete the form below. A SIMRP Health & Wellness Advisor will contact you to arrange a brief introductory call and explain the information needed to prepare your analysis.
REVIEW YOUR BUSINESS’S PROJECTED SAVINGS
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SIMRP Health & Wellness™ is an independent entity that provides access to educational information regarding plans utilizing federally recognized tax codes and wellness reimbursement structures that may help qualifying organizations obtain benefits through payroll tax savings. We utilize the professional services of third-party providers for the preparation, filing, and implementation of SIMRP plan documents; however, we are not owned by, affiliated with, endorsed by, or acting on behalf of such providers, the Internal Revenue Service, the U.S. Department of Labor, or the federal government. The information provided on this website is for general educational and informational purposes only and should not be construed as tax, legal, accounting, financial, or regulatory advice. We are not tax professionals, attorneys, certified public accountants, or experts in the interpretation of tax law, and we do not recommend tax strategies or make guarantees regarding tax treatment, eligibility, savings, or compliance outcomes. Individuals and organizations seeking to verify or rely upon any information presented on this website should consult with qualified tax professionals, legal counsel, payroll specialists, or other licensed advisors regarding their specific circumstances before making any financial, tax-related, legal, or benefits decisions. BENEFITS: Plan benefits, features, service providers, eligibility requirements, and availability are subject to periodic change. Before implementation or enrollment, the applicable Plan provider will outline the benefits currently available under the Plan.
