The payroll-tax question
Lower payroll costs. More take-home pay.
SIMERP adds medical care alongside your existing coverage. When the arrangement meets applicable requirements, the employer may pay FICA on a lower wage base and participating employees may keep more of their pay.
Savings estimator
See the planning figure against your workforce.
This first estimate assumes full participation. The later savings analysis uses the participation rate your team expects.
This marketing illustration isn't a quote or tax opinion. It assumes every employee participates. Actual savings turn on how many employees enroll and their wages. The final plan setup affects the result too. So do program costs and applicable tax treatment. The SIMERP specialist team provides the employer-specific assessment.
Payroll taxes apply to wages. A qualifying medical benefit is treated differently.
A lower taxable wage base may reduce the employer's matching FICA expense.
Employers match Social Security and Medicare taxes on employee wages. Under a properly structured Section 125 election, participating employees direct part of their compensation into the benefit before those taxes are calculated.
When requirements are met, the employer FICA match may apply to a lower wage amount. A SIMERP specialist has to test that against your payroll and the plan your company would use.
The decision behind the number
A qualifying medical benefit can lower payroll costs and leave participating employees with more take-home pay.
When the arrangement meets applicable requirements, the employer may pay FICA on a lower wage base. Participating employees may keep more of the pay they already earn because less comes out in certain taxes. Gross pay stays the same.
The calculator turns that into a first planning estimate. It applies the $639 figure to the employee count you enter.
A company-specific savings analysis happens later, after your organization is confirmed as a fit. If you move forward, the program provider will use your workforce census to show you what may be possible with real employee information.
First, see if you're a fit
Start with a 30-minute fit conversation.
We will start with your company and current benefits. Then we will talk about what you want the program to do for your team.
If SIMERP looks like a fit, the formal savings analysis comes later. At that stage, the program provider uses your workforce census to evaluate the program and its potential savings.