The mechanism
How SIMERP works.
One mechanism, three moves: a pre-tax election, real medical care, and a payroll tax exclusion the IRS itself documents.
01 · The mechanism
How the money moves.
The question
How does SIMERP actually lower payroll tax?
In three moves. Employees make a pre-tax election under Section 125, which lowers the income their payroll taxes are calculated on. Their federal, state, Social Security, and Medicare taxes drop, and part of that savings covers their care membership. With less taxable income on payroll, your FICA bill drops too.
The election. Your company sponsors the plan and employees make a pre-tax salary reduction election under IRC Section 125. Under the tax code, those amounts are treated as employer contributions. This is the same legal machinery behind benefits employers have used for decades.
The care. The plan gives employees access to virtual medical care: primary and urgent care from board-certified physicians, mental health support from licensed clinicians, pharmacy with no-cost medications, and physician-supervised weight health. Every interaction is documented with CPT and ICD codes.
The exclusion. Because the reimbursements pay for actual medical care as defined in IRC Section 213(d), they are excluded from wages. Employees see their own payroll taxes fall, and part of that savings funds their membership. Because their taxable income is lower, your business stops paying its FICA match on those dollars, leaving an average of $53.33 per enrolled employee per month.
02 · The launch
Launched in 30 to 60 days. Your HR team spends under 5 hours on it.
The question
How long does SIMERP implementation take?
30 to 60 days from signed paperwork to a launched program. Your HR team typically spends under 5 hours on the whole thing. Four steps: your Recovery Ledger built from your census, the core plan documents prepared for you, exact payroll instructions for your provider, and employee onboarding run by us.
- 01
Your Recovery Ledger
On the Discovery Call we ask for your employee census. We run your actual payroll and build your Recovery Ledger, then walk you through your real numbers on a follow-up call. No cost, no obligation.
- 02
Compliance documentation
We prepare the core plan documents: the written plan, the adoption agreement customized for your organization, and the summary plan description.
- 03
Payroll integration
We give your HR team the exact payroll codes to set up and the instructions to hand your payroll provider. Most payroll companies already have these codes in their system; your team just asks them to add them to your account. If your provider wants help, we get on the line.
- 04
Employee onboarding
Employees get clear onboarding communications and immediate access to the virtual medical care platform. As soon as they are active, they can add up to 6 legal dependents at no additional cost, and they see more take-home pay on their very next paycheck.
03 · The fit
Who qualifies, and what never changes.
SIMERP fits construction, healthcare, manufacturing, transportation, retail, professional services, and more. If you run payroll for W‑2 employees, your Recovery Ledger will tell you exactly what the program is worth.
The question
Who qualifies for SIMERP?
Businesses with 25 to 3,000+ W‑2 employees, in every industry, in all 50 states. Nothing you have today changes: your health insurance, your broker relationship, your payroll provider, and your employees’ gross pay all stay exactly as they are, because the plan is additive.
Keep your broker. Keep your policy.
“Everything you already have in place for your benefits is a giant hot fudge sundae. We just come along and we’re the cherry that sits on top. We don’t affect anything you have in place. We just make everything better.”
What stays exactly the same
- Your existing health insurance plan
- Your existing broker relationship
- Your current payroll provider
- Your HR team's workload
- Your employees' gross pay
What gets better
- Your FICA payroll tax burden decreases
- Employees' net take-home pay increases
- Your team gains 24/7 urgent care and zero-copay medical services
- Your primary plan claims history improves
- Your culture and retention improve
Not one thing changes about your existing benefits. Everything gets better.
Start with your numbers.
Answer a few questions about your headcount and payroll. If it looks like a fit, you can book a 20 minute Discovery Call on the spot. No cost, no obligation.