# SIMERP

> SIMERP is a Self-Insured Medical Expense Reimbursement Plan. It redirects an
> employer's FICA payroll tax into real medical care for employees, at no net
> cost to the business. Employees' gross pay does not change and their
> take-home pay goes up. The employer keeps its existing broker, health plan
> and payroll provider.

For employers with 25 to 3,000+ W-2 employees, in all 50 states.
Not insurance. A self-insured medical reimbursement plan the employer sponsors.

## The numbers

- Average recovery: $640 per enrolled employee per year
- Average FICA saved: $93.33 per enrolled employee per month
- Kept after every program cost: $53.33 per enrolled employee per month
- Launch: 30 to 60 days, typically under 5 hours of the HR team's time
- First savings appear on the next payroll

## The statutes

IRC 105, 106, 213(d) and 3121 have been law since the Internal Revenue Code of
1954. IRC 125 followed in the Revenue Act of 1978. Treasury Regulation 1.105-2
draws the line the IRS enforces: reimbursements must be tied to actual medical
care, never paid irrespective of whether medical expenses are incurred. IRS
Publication 15 names the plan type directly.

## Pages

- [What is SIMERP](https://simerp.com/what-is-a-simerp): the plain-English definition
- [How it works](https://simerp.com/how-it-works): the mechanism, step by step
- [Savings](https://simerp.com/savings): the math, and an estimator
- [Compliance](https://simerp.com/compliance): the 1.105-2 test and what the IRS actually targets
- [Results](https://simerp.com/results): annual FICA recovery at active clients
- [FAQ](https://simerp.com/faq)
- [For CPAs](https://simerp.com/for-cpas) · [For brokers](https://simerp.com/for-brokers) · [For HR](https://simerp.com/for-hr)

## Notes

Every figure above traces to the published program averages. Nothing here is
tax or legal advice.