FAQ
Straight answers about SIMERP.
How the program works, what it costs (nothing upfront), and why it's defensible. Still have a question? A 15-minute briefing covers it.
Overview
What is a SIMERP?
A SIMERP is a Self-Insured Medical Expense Reimbursement Plan — an employer-sponsored wellness and medical-reimbursement program built on IRS §105 and §125. It lowers employer payroll taxes while giving employees added health benefits, with no change to take-home pay.
Is a WIMPER the same as a SIMERP?
Yes. WIMPER and SIMERP are two names for the same type of §105/§125 program. We use SIMERP, but you may see it called a WIMPER elsewhere — the structure and benefits are the same.
Is this a loophole?
No. It uses established IRS code that has been in place for decades, implemented with third-party legal opinions and audit-ready documentation.
What size company is a fit?
Employers with 25 or more full-time W-2 employees (30+ hours/week) on US payroll see the most value; it scales to large organizations.
Employer benefits
How are the savings created?
Participating employees make a pre-tax §125 election that lowers taxable wages. The employer's FICA on that reduction is your recovery — averaging about $640 per employee per year — and a §105 reimbursement keeps net pay whole.
Is it really cost-neutral?
Yes. Fees and the added employee benefits are funded from the payroll-tax savings, so there's no new budget line.
Do we have to change carriers or brokers?
No. SIMERP layers alongside your existing coverage, network, and broker-of-record — nothing is replaced.
How long does implementation take?
Typically about 2–3 weeks from kickoff, with savings beginning on your first payroll cycle after go-live.
Employee benefits
Does employee take-home pay change?
No. The pre-tax election is offset by a non-taxable reimbursement, so take-home pay is unchanged.
What do employees actually get?
24/7 concierge medicine, unlimited preventive care, free prescriptions, telecounseling and behavioral health, free labs and imaging, and a full wellness program — at no out-of-pocket cost.
Who is eligible?
Full-time W-2 employees working 30+ hours per week. Family coverage specifics are confirmed during your briefing.
How do employees enroll?
We provide employee communications and a simple app; enrollment and wellness activities are handled digitally with minimal effort.
Compliance
Is it audit-ready?
Yes. Every plan operates under IRS §105/§125 and ERISA, with third-party legal opinions, substantiation logs, and CPA-ready documentation from day one.
Do we need a separate third-party administrator?
No. Administration and audit support are handled turnkey through our Compliance Concierge.
How is data secured?
Encryption at rest and in transit, with role-based, least-privilege access, aligned to HIPAA.
ROI & outcomes
What's the average ROI per employee?
Employers typically see $800–$1,200 per employee per year when combining payroll-tax recovery, insurance and workers'-comp offsets, and productivity gains. FICA recovery alone runs up to about $639 per employee.
How are outcomes measured?
Before/after payroll evidence, participation metrics, and period-over-period reporting — fully transparent.
What's the typical participation rate?
Around 85% of eligible employees, which is what the calculator uses by default.
Still have questions?
A no-cost, 15-minute briefing answers them — and models the savings for your headcount.
No carrier changeAudit-ready docsSavings from first payrollCost-neutral