SIMRP PROGRAM
What is the S.I.M.R.P Program?
- SELF
- INSURED
- MEDICAL
- REIMBURSEMENT
- PLAN
Also Known As SIMERP Program: Self-Insured Medical Expense Reimbursement Plan
Also Known As WIMPER: Wellness Integrated Medical Expense Reimbursement
The SIMRP Program is a participatory preventive care management program designed to help employees improve their physical and mental health. This innovative cost savings strategy is made possible by a set of tax codes that are part of the Affordable Care Act (ACA). The SIMRP Program can save employers a substantial amount of costs by reducing payroll taxes and lowering workers' compensation insurance premiums. Many indirect cost savings can greatly benefit your organization.
Watch This Video To Learn More About the SIMRP Program
SIMRP Program Direct & Indirect Cost-Saving
1) Save $500-$1,500 in employer payroll taxes per eligible employee.
2) Reduce worker's comp costs approximately 5%-30% by reducing gross payroll.
3) Can reduced health insurance cost by lowering utilization of health insurance benefits.
4) Employees may miss work less with access to 24/7 telemedicine doctor/counselor visits.
5) Wellness benefits can help employees become healthier and increase employee productivity at work.
6) Our No-Net-Cost benefits are very valuable to employees and can reduce employee turnover costs.
SIMRP Program Tax Codes
- 125 Pretax Deduction on your employees paycheck creates FICA payroll tax savings.
- 105 SIMRP Untaxed Reimbursement offsets the pretax deduction on your employees' paychecks.
- 213(d) Medical Expense Allowance reallocates payroll tax savings to pay for employee benefits.
Example Of How The SIMRP Program Works
We use a pretax deduction and an untaxed reimbursement to lower the amount of taxes that the employee pays. We use the tax savings created by the program to pay for the cost of the wellness and insurance benefits. Leftover tax savings will increase the employee's net pay.
NORMAL EMPLOYEE PAYCHECK
(Tax savings vary by State and by Employee Income/Deductions)
PAYCHECK WITH WELLNESS PROGRAM
(Tax savings vary by State and by Employee Income/Deductions)
14 Employee SIMRP Program Client Savings
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* This company is saving $1,778/month or $21,344/year in employer payroll taxes.
*Reduced gross payroll by $182,000 creating 13% workers' comp insurance savings.
*Their employees earn an average of $119 per month in net take-home pay.
*Employee wellness benefits costs are paid for with payroll tax savings.
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Gross Payroll Reduction Example
The SIMRP Program reduces gross payroll for your qualified employees. Your workers' compensation insurance is calculated from your gross payroll. By reducing your gross payroll, you can save approximately 5%-30% on your workers' comp insurance.
WHO CAN USE THIS SIMRP PROGRAM?
We work with large and small organizations located anywhere in the United States. Your organization can have as few as three full-time W2 employees or employers with thousands of employees. The SIMRP Program is compatible with any type of employer in the United States.
BUSINESSES
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NON-PROFIT ORGANIZATION
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GOVERNMENT AGENCIES
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SIMRP Program Requirements
- A minimum of three full-time (30+ weekly hours) W2 employees is required.
- 1099 independent contractors do not qualify.
- Temporary employees do not qualify.
SIMRP Program Requirements
- Some employees may have too many W4 deductions to qualify.
- Business owners don't qualify as employees.
- Employees must work inside the United Stated or pay US FICA Payroll Taxes.
No Cost Employee Benefits
Visit the Employee Benefits page of our website to see a comprehensive list of Employee Benefits
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