What is SIMERP?
The Self-Insured Medical Expense Reimbursement Program (SIMERP) is a government-authorized program established under the Affordable Care Act in 2013. It provides employers with a tax-advantaged way to enhance employee benefits while reducing payroll tax expenses.
How Does SIMERP Work?
SIMERP operates under IRS-approved Sections 105(b), 125, 106(a), and 213(b). The program allows employers to convert a portion of taxable wages into qualified benefits, creating FICA tax savings for both the employer and employees.
Key Benefits for Employers
- Reduce FICA expenses by up to $638.98 per employee annually
- Maintain existing insurance plans, carriers, and brokers
- Improve employee satisfaction and retention
- Full IRS compliance guaranteed
Key Benefits for Employees
- Access to additional benefits at no out-of-pocket cost
- Lower taxable income
- Enhanced overall compensation package
Who Qualifies for SIMERP?
SIMERP is available to employers who offer group health insurance and have W-2 employees. The program is particularly beneficial for businesses with 10 or more employees, though smaller organizations may also qualify.
Getting Started
Implementing SIMERP is straightforward with the right partner. Contact CR Advantage for a free consultation to determine your eligibility and potential savings.
Ready to Learn More About SIMERP?
Contact us for a free consultation to discover how much your business could save.
Schedule a Brief Consultation