How a SIMRP Works
A Self-Insured Medical Reimbursement Plan (SIMRP) is an employer-sponsored wellness benefit funded through pre-tax payroll contributions under Section 125.
1
Enroll Eligible Employees
Full-time W-2 employees with ACA-compliant medical coverage can participate.
2
Pre-Tax Payroll Deduction
$1,173 a month is deducted through your Section 125 Cafeteria Plan, lowering taxable wages.
3
Reimbursed Through the SIMRP
The full $1,173 is reimbursed to the employee through the plan.
4
Tax Savings Cover the Cost
Savings cover the $114 monthly admin fee and can increase take-home pay.
Calculate the Savings
Estimate the change in take-home pay for a typical employee, plus your estimated employer payroll tax savings.
Enter an employee's gross monthly pay to see the estimate.
| Without SIMRP | With SIMRP |
|---|
Estimate only. Federal tax uses 2026 IRS brackets and standard deduction, annualized from your monthly pay. Medicare (1.45%) and Social Security (6.2%) apply after pre-tax health premiums. Employer savings = $1,173 × 12 × employer FICA rate × employees. Actual results depend on each employee's W-4, dependents, credits and your payroll setup.
Why Business Owners Offer the Plan
A wellness benefit your employees will use, built on a tax structure that works for your business.
A Raise Without Raising Wages
Pre-tax savings can increase employees’ net pay without adding to your wage costs.
Lower Payroll Taxes
Section 125 deductions reduce taxable wages, which can lower your employer share of FICA.
Attract & Retain Talent
Stand out with a benefits package that includes telemedicine, mental health support and coaching.
Support a Healthier Team
Give employees tools for stress, chronic conditions and healthy habits, with $0 copays.
What Your Employees Get
Six wellness programs in one portal, available anytime on a computer, tablet or phone.
24/7 Telemedicine
Wellness Tracking
Mental Health Support
Healthy Lifestyle Programs
Pregnancy & Family Support
Recovery & Relationship Coaching
Eligibility
Full-time W-2 employees with ACA-compliant medical coverage.
Care When They Need It
$0 copays and a $0 deductible for eligible services.
Annual Value: $14,076
Per employee, as determined by the U.S. Department of Health and Human Services.
See the Difference on a Real Paycheck
A sample monthly paycheck for one employee, with and without the SIMRP.
| Gross Income | $5,523.92 |
|---|---|
| Pre-Tax Deductions: 403(b) | ($85.00) |
| Dental / Vision / Medical | ($147.43) |
| State Pension Plan | ($455.72) |
| Taxable Income | $4,835.77 |
| Medicare | ($77.96) |
| Federal Tax Withholding | ($576.58) |
| Total Taxes | ($654.54) |
| Net Paycheck | $4,181.23 |
| Gross Income | $5,523.92 |
|---|---|
| Pre-Tax Deductions: 403(b) | ($85.00) |
| Dental / Vision / Medical | ($147.43) |
| State Pension Plan | ($455.72) |
| SIMRP Premium | ($1,173.00) |
| Taxable Income | $3,662.77 |
| Medicare | ($60.96) |
| Federal Tax Withholding | ($338.70) |
| Total Taxes | ($399.66) |
| SIMRP Reimbursement | $1,173.00 |
| Program Admin Fee | ($114.00) |
| Net Paycheck | $4,322.11 |
| Pay Increase | +$140.88 / month |
Example for illustrative purposes only. Results vary with each employee’s tax situation, filing status, dependents and other payroll factors.
Frequently Asked Questions
Common questions from business owners about the SIMRP Employee Wellness Plan.
What is a SIMRP?
A Self-Insured Medical Reimbursement Plan (SIMRP) is an employer-sponsored benefit funded through pre-tax payroll contributions. Employees contribute through a Section 125 Cafeteria Plan and the contribution is reimbursed to them through the SIMRP, which lowers their taxable income.
Which employees are eligible?
Full-time W-2 employees who have ACA-compliant medical coverage.
How does the plan increase take-home pay?
The $1,173 monthly contribution is deducted before taxes, so employees pay less federal income tax and Medicare. The full amount is reimbursed, and the tax savings cover the $114 monthly program fee. Depending on each employee's tax situation, net pay may increase.
How does a SIMRP benefit my business?
Pre-tax Section 125 deductions reduce taxable wages, which can also reduce the employer share of payroll taxes. You add telemedicine, mental health and wellness programs to your benefits package, which helps you attract and keep good employees.
What wellness services are included?
24/7 telemedicine, wellness tracking, mental health support, healthy lifestyle programs, pregnancy and family support, and recovery and relationship coaching, with $0 copays and a $0 deductible for eligible services.
How do we get started?
Book a free plan review. We'll look at your team, estimate the savings for your business and walk you through setup.
Ready to Offer the Wellness Plan?
Book a free plan review. We’ll look at your team, estimate the savings and walk you through setup.
- Free plan review
- No obligation
- Setup support for your team