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SIMRP

Estimated SIMRP Savings Calculator

Estimated SIMRP Savings Calculator

See a simple estimate of how much your organization may be able to redirect through a SIMRP strategy based on the number of eligible full-time employees.

Estimated Annual Opportunity $0

This calculator is for educational purposes only and provides a general estimate. Actual results depend on eligibility, payroll structure, participation, plan design, and compliance review.

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FAQs

A Smarter Approach to Employee Benefits
 
SIMRP (Self-Insured Medical Reimbursement Plan) is an employer-sponsored benefits strategy designed to provide employees with valuable healthcare and wellness services while helping employers reduce eligible payroll tax costs.
 
SIMRP is not a replacement for traditional health insurance. Instead, it is designed to work alongside an employer’s existing benefits program, helping organizations enhance the benefits they offer without adding traditional benefit costs.
SIMRP combines a Section 125 cafeteria plan with a Section 105 medical reimbursement structure.
 
Participating employees make a pre-tax contribution through payroll, which reduces taxable income. Employees may then receive tax-free reimbursements associated with eligible medical and wellness services provided through the program.
 
Because participating payroll is structured on a pre-tax basis, employers may also realize savings on eligible payroll taxes.
Depending on the program selected, employees may have access to a comprehensive range of healthcare and wellness services, including:
 
  • 24/7 Virtual Primary Care
  • Mental & Behavioral Health Support
  • Wellness & Lifestyle Coaching
  • Prescription Medication Benefits
  • Physician-Supervised Weight Management Support
  • Preventive Care & Health Screenings
  • Chronic Condition Management
 
These services are designed to make everyday healthcare more accessible while encouraging employees to take a more proactive approach to their health.
Employees can gain access to valuable healthcare and wellness resources while potentially reducing their taxable income. Eligible family members may also have access to certain program services.
 
Depending on the services provided through the plan, employees may receive covered care with little to no out-of-pocket expense.
For employers, SIMRP can provide an opportunity to:
 
  • Reduce eligible payroll tax expenses
  • Enhance existing employee benefits
  • Provide additional healthcare resources without replacing current insurance
  • Support employee wellness and engagement
  • Strengthen recruitment and retention efforts
 
At S.J. Edwards, Inc., we help employers understand how SIMRP works, evaluate whether it is appropriate for their organization, and guide them through implementation and ongoing support.
No. SIMRP is not health insurance and does not replace traditional health insurance.
 
SIMRP is a supplemental medical reimbursement program designed to work alongside an employer’s existing benefits. It provides employees with access to additional healthcare and wellness services while helping employers create a more tax-efficient benefits strategy.
 
Think of SIMRP as an enhancement to your existing benefits—not a replacement for them.
SIMRP is designed to work alongside an employer’s existing health insurance—not replace or disrupt it.
 
Employees continue to use their current health plan for traditional medical coverage, while SIMRP provides access to additional healthcare and wellness services such as 24/7 virtual care, mental health support, prescription benefits, preventive care, wellness programs, and other eligible services.
 
SIMRP adds another layer to an employer’s benefits strategy, helping make everyday healthcare more accessible while creating potential payroll tax savings for both the employer and participating employees.
 
Your existing health plan stays in place—SIMRP simply enhances the benefits available to your workforce.
Yes—when properly structured, documented, and administered, SIMRP is designed to operate within applicable federal tax and benefits regulations, including Internal Revenue Code Sections 105 and 125.
 
Compliance depends on proper plan design, documentation, administration, and ongoing adherence to applicable requirements.
 
At S.J. Edwards, Inc., we work with employers and our program partners to help ensure SIMRP is implemented correctly, integrated appropriately with existing benefits, and supported with the necessary administrative framework.
 
The goal is simple: provide meaningful employee benefits while maintaining a properly structured and compliant program.
The pre-tax deduction is not an arbitrary amount. It is based on a professional actuarial valuation of the medical and wellness services provided through the SIMRP program.
 
Independent actuaries evaluate the fair market value of the program’s benefits and services using established valuation methods and applicable federal guidelines.
 
This process helps ensure that employee contributions are appropriately aligned with the value of the benefits being provided and that the program is structured consistently with applicable requirements.

FAQs

WHAT IS SIMRP?

SIMRP (Self-Insured Medical Reimbursement Program) is an IRS-qualified workplace program that allows businesses to provide additional health and wellness benefits to employees at no net cost with no reduction in the employees’ take-home pay. Employees will be able to utilize a monthly tax allotment for their own health and wellness benefits.

 

Employers will save approximately $630 a year per employee on payroll taxes. In addition, employers may see an overall 30% reduction in their workers’ compensation costs by reducing the gross wages footprint of their employees’ gross wages.

HOW DOES MY COMPANY BENEFIT FROM THIS PROGRAM AND NOT JUST HAVE AN ADDITIONAL EXPENSE?

Employers benefit from this program in multiple ways:

 

  1. Decrease workers’ compensation costs by up to 30% without altering your policy or broker.
  2. This life changing program provides the employer with payroll tax savings averaging $630 per employee per year.
  3. Serves as a morale booster and can help you attract better talent for open positions and improve employee retention.

HOW DOES IT WORK?

For Employers: Think of SIMRP as a key to unlock savings on taxes and reduce costs related to workers’ compensation. It’s like giving your business a financial health check-up and finding ways to keep more money in your pocket, up to 30% savings on Workers Comp and an average of $630 annually per employee in payroll taxes.

 

For Employees: Employees can have access to a suite of insurance benefits without having to answer any health questions—everything from life insurance, disability insurance and critical illness coverage. The best part? They do all this without affecting their take-home pay.

 

Contact S.J. Edwards, Inc. at (516) 208-9988 to schedule a free consultation. We’ll walk you through the process, assess your team’s needs, and prepare a customized rollout plan to bring SIMRP to your organization quickly and effectively.

SIMRP / Indemnity Plan Interest Form