Found money
hiding in your
payroll.

Nothing changes. Your existing health plan, carriers, and brokers stay exactly as they are. We add a second Section 125 pre-tax deduction that generates FICA savings — that's it. Employees don't change anything about how they use their current coverage.

Most companies do — that's actually the starting point for most of our engagements. What most companies have is the shell of a Section 125 plan covering health insurance pre-tax deductions. What they don't have is the SIMERP structure underneath that captures the full FICA savings. Think of it as having a car without the engine. We add the engine.

No board vote required. This is a payroll administration change, not a new benefit plan or expenditure. It's handled at the employer level by whoever manages payroll setup.

Zero net cost to the employer or employee. An admin fee of $40 per enrolled employee per month is paid out of the savings the program generates — not out of pocket. The employer nets $53.33 per enrolled employee per month after that fee — approximately $640 annually.

The IRS Chief Counsel Memorandum addressed indemnity-based plans — not SIMERPs. We are a Self-Insured Medical Expense Reimbursement Plan, structured under Section 213(d) medical expense reimbursement. That distinction is why we have the compliance coverage and state-level endorsements we do, and why carriers like Allstate, Colonial Life, and Manhattan Life have independently validated our plan.

5–10 minutes per payroll period. The program integrates automatically with every major payroll system — ADP, QuickBooks, and others. New employee onboarding is handled automatically. There is no ongoing manual work required from your HR team.

Section 125 is the broad IRS tax code provision that allows pre-tax payroll deductions for certain benefits — most employers have a basic Section 125 Premium Only Plan (POP) that covers health insurance premiums. A SIMERP — Self-Insured Medical Expense Reimbursement Plan — is a more advanced structure under Section 125, 105(b), and 213(d) that generates full FICA payroll tax savings for both the employer and employee. Only about 2% of employers currently have a SIMERP despite its significant financial benefits.

Savings begin within the first payroll cycle after go-live, typically within 30 days of signing. The employer sees operating budget improvement immediately, and employees see increased take-home pay in their very first paycheck under the new structure. There are no upfront costs — the admin fee is paid from savings already captured.

Yes — in two ways. First, the SIMERP structure operates under federal tax code and is available to employers in all 50 states. Second, the Indiana Secretary of Education and the State of New Mexico have additionally endorsed the program for use by K-12 districts in those states, resulting in widespread teacher enrollment. Allstate, Colonial Life, and Manhattan Life have also independently reviewed and added the plan to their agent product lineups.

The SIMERP is structured under multiple US tax code provisions: Section 125 (cafeteria plan pre-tax deductions), Section 105(b) (employer-provided accident and health plans), and Section 213(d) (qualified medical expense reimbursements). It is also compliant with ERISA, HIPAA, and the Affordable Care Act. This multi-code compliance framework is what distinguishes a SIMERP from indemnity-based plans that rely on a single provision.

Any employer with W-2 employees working 30 or more hours per week on an existing group health plan can benefit. The best results come from companies with stable, full-time workforces: manufacturing, professional services, healthcare organizations, school districts, logistics companies, and staffing agencies. The sweet spot is 50 to 500 employees, though the program works at any size above 25 enrolled employees.

Harbor Shield is an IRS audit protection system included at no cost with every employer enrollment. It is backed by $20 million per-incident Errors and Omissions coverage through internationally recognized carriers. The system monitors IRS inquiry activity and notifies our legal team proactively — typically three months before any employer or employee would receive an IRS notice — allowing attorneys to respond and submit documentation before any audit escalates. Harbor Shield is unique to our program — no other Section 125 advisor we've encountered offers comparable audit protection.