SIMERP 125 is a market-leading employer-sponsored preventive care plan that delivers comprehensive health coverage at zero cost—while generating measurable savings through payroll tax reduction. It's the rare benefit that improves employee wellness without adding to your overhead.
Any employer paying FUTA, FICA, or state unemployment taxes on eligible wages qualifies for tax savings.
Companies looking to offset rising benefit costs without compromising employee health coverage.
Designed as a complement to existing ERISA plans—not a replacement—filling coverage gaps at no added cost.
Additive benefits without added overhead—ideal for portfolio operators optimizing P&L while enhancing retention.
SIMERP 125 is an employer-sponsored Section 125 cafeteria plan that delivers a comprehensive preventive care benefit. It is not an insurance product, carries no coverage gaps, and requires no carrier relationship.
The plan works by redirecting a portion of employee wages through a pre-tax salary reduction mechanism. Employees receive 100% free preventive care. Employers generate payroll tax savings that exceed the cost of benefit delivery — making it net-positive from day one.
The Core Distinction
Most employer health benefits cost the employer while providing value to the employee. SIMERP 125 delivers value to both — reducing the employer's effective payroll tax burden while fully covering the employee's preventive care.
There are no premiums, no underwriting, no coverage denials, and no liability exposure for employers or employees. The benefit is delivered directly through participating provider networks.
SIMERP 125 is designed as a supplementary layer, not a replacement. It fills coverage gaps without disrupting your current ERISA plan design, benefits elections, or compliance structure.
At approximately $640 per employee annually in employer payroll tax savings against zero benefit cost, the economics work for any employer with 10 or more eligible W-2 employees. No break-even analysis required.
Implementation requires no upfront investment and minimal HR involvement. We handle plan documentation, enrollment, and compliance — your role is to approve and communicate.
Calculation basis: $8,000 in pre-tax salary reduction per eligible employee generates approximately $640 in federal payroll tax savings. State unemployment tax savings vary by state. Figures are illustrative.
The math compounds quickly. Here's the employer-level impact for common workforce sizes.
Workforce
Annual Tax Savings
5-Year Savings
Employer Cost
Assumptions: 100% eligible W-2 workforce. Federal tax rates based on current FUTA (0.8% after credit) and FICA employer contribution (6.2% OASDI + 1.45% Medicare). Does not include state unemployment tax savings. Individual employer results will vary based on workforce composition.
SIMERP 125 leverages Section 125 of the Internal Revenue Code to deliver a zero-cost preventive care benefit while generating meaningful payroll tax reductions for employers.
The plan utilizes a cafeteria plan structure allowing employees to receive preventive care benefits through pre-tax salary reductions. This reduces taxable wages, lowering both employer and employee FICA obligations.
By reducing taxable wages through the Section 125 mechanism, employers save approximately $640 per employee annually on FUTA, FICA, and state unemployment taxes—compounding across your entire eligible workforce.
Employees receive 100% free preventive care including primary care, urgent care, mental health services, and 1,000+ prescriptions—at zero out-of-pocket cost while employers generate net-positive ROI.
No premiums, deductibles, or co-pays for preventive care services covered under the plan.
Complements existing plans rather than replacing them—filling gaps in coverage without disrupting current benefit structures.
Net-positive employer economics from day one—no implementation costs, no ongoing administration burden, measurable tax savings.
No carrier risk—the plan is not insurance and carries no liability for employers or employees.
The plan delivers the strongest value in specific operational and financial contexts. Understanding these conditions helps determine whether this solution is the right fit for your organization.
Organizations with 10+ eligible W-2 employees generate sufficient tax savings to make implementation worthwhile. The ROI improves proportionally with workforce size.
Companies whose high-deductible health plans leave employees underutilizing preventive care benefit from removing cost barriers to essential services.
Organizations seeking to reduce benefit costs while maintaining or improving employee satisfaction—without capital expenditure or ongoing administrative burden.
Businesses competing for talent where enhanced benefits packages improve retention without increasing cash compensation or headcount overhead.
Organizations with existing compliant ERISA health plans seeking supplementary benefits that don't conflict with current plan designs or regulatory compliance.
Portfolio companies where operational improvements without capital outlay support EBITDA optimization while maintaining employee satisfaction metrics.
Not sure if SIMERP 125 is right for your situation?
Request a Confidential AssessmentA comprehensive preventive care benefit covering the services employees use most—completely free at point of care with no cost-sharing requirements.
Immediate access to urgent care facilities for non-emergency medical needs—without the ER wait times or costs.
Comprehensive primary care physician visits including annual physicals, wellness checks, and chronic condition management.
Access to 1,000+ preventive care prescriptions at no cost, covering common medications for chronic and acute conditions.
Behavioral health services including therapy consultations, mental wellness resources, and substance abuse support.
Physician-supervised weight loss program including consultations, body composition analysis, and qualifying medications.
Easy online scheduling, virtual care options, and a mobile-friendly member portal for managing appointments and prescriptions.
A streamlined onboarding process designed to minimize disruption while maximizing speed-to-value. Most implementations are complete within 30-60 days.
We evaluate your workforce composition, existing benefit structure, and tax profile to confirm SIMERP 125 suitability and projected savings.
We prepare all required Section 125 plan documents and ensure ERISA compliance, handling the administrative complexity on your behalf.
We manage the enrollment process, communicating with employees and ensuring high participation rates through clear, professional outreach.
Ongoing support includes enrollment maintenance, compliance updates, and periodic reviews to maximize your tax savings over time.
Preparing the following information will accelerate your implementation timeline:
Every covered service is provided at 100% with no deductibles, copays, or cost-sharing requirements—eliminating financial barriers to essential healthcare.
Immediate access to urgent care facilities for non-emergency medical needs—without ER costs or wait times.
Annual physicals, wellness visits, and chronic condition management with your choice of primary care physician.
Access to 1,000+ preventive care medications covering chronic and acute conditions—at no out-of-pocket cost.
Behavioral health services including therapy consultations, wellness resources, and substance abuse support.
Physician-supervised weight loss program with body composition analysis and qualifying medications.
Easy online scheduling, virtual care options, and a mobile-friendly member portal for managing care.
The SIMERP 125 Plan is designed as a complement to—not a replacement for—your existing employer health plan. It fills coverage gaps while delivering measurable financial benefits that improve your bottom line from day one.
With no implementation costs, minimal ongoing administration, and immediate payroll tax relief, this preventive care solution offers exceptional value for employers committed to both employee wellness and operational efficiency.
Works alongside current employer health coverage without replacement or coordination issues. ERISA compliance maintained.
Preventive care access enables early intervention, which can favorably impact workers' compensation claims and costs over time.
$640 annual savings per eligible employee on FUTA, FICA, and state unemployment taxes—compounding across your workforce.
Comprehensive health benefits at zero cost enhance employee satisfaction, wellness outcomes, and retention metrics.
Schedule a confidential consultation to explore how SIMERP 125 can deliver measurable payroll tax savings while providing comprehensive preventive care for your employees—at zero cost to your organization.