{"id":59,"date":"2026-03-06T23:05:07","date_gmt":"2026-03-06T23:05:07","guid":{"rendered":"https:\/\/5talentssf.com\/?page_id=59"},"modified":"2026-03-26T18:38:54","modified_gmt":"2026-03-26T18:38:54","slug":"simrp-f-a-q","status":"publish","type":"page","link":"https:\/\/5talentssf.com\/?page_id=59","title":{"rendered":"SIMRP F.A.Q."},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"59\" class=\"elementor elementor-59\" data-elementor-post-type=\"page\">\n\t\t\t\t<div class=\"elementor-element elementor-element-569005e e-con-full e-flex elementor-invisible e-con e-parent\" data-id=\"569005e\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;fadeInDown&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9f7a35d elementor-widget__width-initial elementor-widget elementor-widget-theme-site-logo elementor-widget-image\" data-id=\"9f7a35d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"theme-site-logo.default\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/5talentssf.com\">\n\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/5talentssf.com\/wp-content\/uploads\/2026\/03\/5-1.png\" class=\"attachment-full size-full wp-image-21\" alt=\"\" srcset=\"https:\/\/5talentssf.com\/wp-content\/uploads\/2026\/03\/5-1.png 500w, https:\/\/5talentssf.com\/wp-content\/uploads\/2026\/03\/5-1-300x300.png 300w, https:\/\/5talentssf.com\/wp-content\/uploads\/2026\/03\/5-1-150x150.png 150w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/>\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e21fbd elementor-widget__width-inherit elementor-widget elementor-widget-heading\" data-id=\"5e21fbd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">5 Talents Strategic Finance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-e9b5fcc e-flex e-con-boxed e-con e-parent\" data-id=\"e9b5fcc\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-6454cb4 e-con-full e-flex e-con e-child\" data-id=\"6454cb4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f1a2d15 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"f1a2d15\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/calendly.com\/revenuereturnspecialists\/5-talents-payroll-strategy\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Book An Appointment Today!<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53f26c3 elementor-widget elementor-widget-text-editor\" data-id=\"53f26c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><strong>SIMRP Payroll Benefit Program \u2013 FAQ<\/strong><\/h2><p class=\"\"><strong>What is SIMRP?<\/strong><\/p><p class=\"\">SIMRP stands for <strong>Self-Insured Medical Reimbursement Program<\/strong>. It is an employer-sponsored benefit program that allows companies to reimburse employees for certain medical or wellness services on a <strong>tax-advantaged<\/strong> basis.<\/p><p class=\"\"><strong>How does SIMRP help employers save on payroll taxes?<\/strong><\/p><p class=\"\">SIMRP pairs a <strong>pre-tax payroll deduction<\/strong> with a compliant medical expense reimbursement plan:<\/p><ol data-rte-list=\"default\"><li><p class=\"\">Employees make an approved pre-tax contribution through a Section 125 (\u201ccafeteria\u201d) plan.<\/p><\/li><li><p class=\"\">Eligible medical or wellness services are then reimbursed to the employee under IRS Section 105 rules.<\/p><\/li><li><p class=\"\">Because taxable wages decrease, employers may save on <strong>FICA payroll taxes<\/strong>, and in some states, on <strong>workers\u2019 compensation premiums<\/strong>.<\/p><\/li><\/ol><p class=\"\">This is why SIMRP is often marketed as creating \u201cpayroll tax savings,\u201d even though it is <strong>not a formal tax credit<\/strong>.<\/p><p class=\"\"><strong>Is SIMRP compliant with IRS and ERISA regulations?<\/strong><\/p><p class=\"\">Yes\u2014<strong>when properly structured and administered.<\/strong><br \/>SIMERP must meet multiple regulatory requirements, including:<\/p><ul data-rte-list=\"default\"><li><p class=\"\">IRS Section 105 medical reimbursement rules<\/p><\/li><li><p class=\"\">Section 125 cafeteria plan guidelines<\/p><\/li><li><p class=\"\">ERISA plan documentation, plan administration, and nondiscrimination rules<\/p><\/li><li><p class=\"\">HIPAA privacy requirements<\/p><\/li><\/ul><p class=\"\">5 Talents Strategic Finance partners only with administrators who maintain compliant plan documents, maintain required recordkeeping, and provide third-party oversight.<\/p><p class=\"\"><strong>What expenses are reimbursable under SIMRP?<\/strong><\/p><p class=\"\">Reimbursable items vary by plan design but commonly include:<\/p><ul data-rte-list=\"default\"><li><p class=\"\">Preventive health screenings<\/p><\/li><li><p class=\"\">Telehealth or wellness services<\/p><\/li><li><p class=\"\">Approved medical consultations<\/p><\/li><li><p class=\"\">Certain out-of-pocket medical expenses<\/p><\/li><\/ul><p class=\"\">Plans do <strong>not<\/strong> reimburse general cash, non-medical items, or disguised compensation.<\/p><p class=\"\"><strong>Is SIMRP a good fit for all employers?<\/strong><\/p><p class=\"\">Not always. Best results occur when:<\/p><ul data-rte-list=\"default\"><li><p class=\"\">A business has <strong>W-2 employees<\/strong> enrolled in standard health insurance<\/p><\/li><li><p class=\"\">Employees are likely to participate voluntarily<\/p><\/li><li><p class=\"\">The employer wants to reduce payroll tax burden while offering additional benefits<\/p><\/li><\/ul><p class=\"\">Certain owners, highly compensated employees, or specific organizational structures may require special handling to maintain compliance.<\/p><p class=\"\">5 Talents Strategic Finance evaluates every client\u2019s eligibility before recommending implementation.<\/p><p class=\"\"><strong>Why is there controversy around SIMRP?<\/strong><\/p><p class=\"\">Some professionals express concern about:<\/p><ul data-rte-list=\"default\"><li><p class=\"\">Plans that reimburse employees without providing legitimate medical services<\/p><\/li><li><p class=\"\">Administrators who promise savings without robust compliance<\/p><\/li><li><p class=\"\">Programs appearing to \u201cdouble dip\u201d by pairing pre-tax deductions with tax-free reimbursements<\/p><\/li><\/ul><p class=\"\">These concerns arise mostly from <strong>poorly designed or improperly administered<\/strong> versions of the program. A compliant SIMRP avoids these pitfalls through proper documentation, real services, and verified reimbursements.<\/p><p class=\"\"><strong>What are the potential benefits for employers and employees?<\/strong><\/p><p class=\"\"><strong>Employers may see:<\/strong><\/p><ul data-rte-list=\"default\"><li><p class=\"\">Reduced payroll tax liability<\/p><\/li><li><p class=\"\">Lower workers\u2019 compensation premium base (state-dependent)<\/p><\/li><li><p class=\"\">Improved retention and recruitment<\/p><\/li><li><p class=\"\">A meaningful, low-cost employee benefit<\/p><\/li><\/ul><p class=\"\"><strong>Employees may receive:<\/strong><\/p><ul data-rte-list=\"default\"><li><p class=\"\">Additional wellness benefits<\/p><\/li><li><p class=\"\">Lower taxable income<\/p><\/li><li><p class=\"\">Tax-free reimbursement for eligible services<\/p><\/li><\/ul><p class=\"\"><strong>How does 5 Talents Strategic Finance support SIMRP implementation?<\/strong><\/p><p class=\"\">We provide:<\/p><ul data-rte-list=\"default\"><li><p class=\"\"><strong>Eligibility analysis<\/strong><\/p><\/li><li><p class=\"\"><strong>Plan design recommendations<\/strong><\/p><\/li><li><p class=\"\"><strong>Coordination with compliant third-party administrators<\/strong><\/p><\/li><li><p class=\"\"><strong>Employee communication and onboarding materials<\/strong><\/p><\/li><li><p class=\"\"><strong>Ongoing compliance review<\/strong><\/p><\/li><\/ul><p class=\"\">Our goal is to ensure clients gain the <strong>full advantages<\/strong> of the program\u2014while avoiding the common compliance risks that other implementations may overlook.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-07f6b07 e-con-full e-flex e-con e-child\" data-id=\"07f6b07\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1dc6b26 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"1dc6b26\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/calendly.com\/revenuereturnspecialists\/5-talents-payroll-strategy\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Book An Appointment Today!<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>5 Talents Strategic Finance Book An Appointment Today! SIMRP Payroll Benefit Program \u2013 FAQ What is SIMRP? SIMRP stands for Self-Insured Medical Reimbursement Program. It is an employer-sponsored benefit program that allows companies to reimburse employees for certain medical or wellness services on a tax-advantaged basis. How does SIMRP help employers save on payroll taxes? [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_canvas","meta":{"footnotes":""},"class_list":["post-59","page","type-page","status-publish","hentry"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/pages\/59","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/5talentssf.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59"}],"version-history":[{"count":5,"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/pages\/59\/revisions"}],"predecessor-version":[{"id":140,"href":"https:\/\/5talentssf.com\/index.php?rest_route=\/wp\/v2\/pages\/59\/revisions\/140"}],"wp:attachment":[{"href":"https:\/\/5talentssf.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}