Business Tax Strategy · ProfitGuard Plus
What to look for
in a SIMRP provider
A Self-Insured Medical Reimbursement Plan is a written plan with real documents and real obligations behind it. The provider you pick is the one who drafts those documents, integrates with your payroll and answers to your CPA. Here is what one should hand you before you sign anything.
Quick answer
- Written plan documents you and your CPA can read, before you sign, not after.
- Documents drafted and reviewed by CPAs and ERISA attorneys who work in this area.
- A structure where reimbursement flows under the SIMRP plan document, never back through the Section 125 cafeteria plan.
- Benefits that are all medical care under Section 213(d), with nothing bolted on that is not.
- Pairing with a qualifying ACA medical plan, which makes it an integrated Section 105 plan.
- A mock payroll before go live, so the numbers are proven before they are real.
- Coordination with the payroll provider you already use, rather than a switch.
- A straight answer about any insurance policy inside the plan and how its premium is taxed.
What should be on the table before you sign
The plan documents
A SIMRP is a written plan. The documents should be available to you and to your CPA before you commit, not produced afterwards.
Who drafted and reviewed them
CPAs and ERISA attorneys who work in this area. Ask, and expect a specific answer.
The code sections, in writing
Sections 125, 106(a), 105(b) and 213(d), with Treasury Regulation 1.105-11 for the reimbursement. A provider who cannot point at the statute is not the one you want drafting your plan.
A mock payroll
A full dry run with the plan in place before go live, proving the numbers match what you were told.
The structural question that matters most
Ask where the reimbursement comes from. It should flow under the SIMRP plan document. If it runs back out through the Section 125 cafeteria plan, or through flex credits, it is taxable, and that is the design the IRS Office of Chief Counsel memoranda addressed.
The long version, including what the memoranda did and did not say, is on is a Section 125 preventive care plan legal.
What the ongoing relationship looks like
Plan documents maintained, payroll integration kept working, enrollment handled, and somebody who will get on the phone with your CPA. The administration is not a one time setup. Ask who handles it month to month and what stays your job.
Ours runs 30 to 45 days to set up, with your CPA looped in early on purpose. That path is on how long it takes to set up.
Frequently asked questions
What should a SIMRP provider give me before I sign?
Written plan documents you and your CPA can read, the code sections the plan rests on, a clear answer on where reimbursement flows, and a mock payroll before go live.
Who should have drafted the plan documents?
CPAs and ERISA attorneys who work in this area. Ask directly, and expect a specific answer rather than a reassurance.
What is the most important structural question?
Where the reimbursement is paid from. It should flow under the SIMRP plan document, never back through the Section 125 cafeteria plan, because reimbursements routed back through the cafeteria plan are taxable.
Do I have to change payroll providers?
You should not have to. A provider should coordinate with the payroll system you already use.
What does the provider handle after go live?
Plan documents, payroll integration and enrollment on an ongoing basis. Ask what stays your job, and get the answer before you sign.
This is education, not tax or legal advice. Actual savings vary by payroll structure, participation, and state and local tax. Talk to your CPA about your specifics before you decide. ProfitGuard Plus is a marketing name for a structure built on IRS code sections 125, 106(a), 105, and 213(d).
See your ProfitGuard Plus number
Enter your W-2 headcount and see the combined value first. Then we'll run your exact numbers. You can also read the full walkthrough on the ProfitGuard Plus page or call +1 (586) 899-1003.
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