These additional benefits plans that are available at zero net cost to companies and eligible employees fall under special pre-tax options.
These types of plans are called different things depending on details, such as a SIMRP or SIMERP, which stands for Self-Insured Medical (Expense) Reimbursement Program. Another type is called a WIMPER, which stands for Wellness Integrated Medical Plan Expense Reimbursement, and other types of Section 125 wellness plans. However, no other programs like this include Innovia Behavioral Health support for full-time and part-time employees, contractors, and their immediate family members.
In the examples above, there are specific tax laws that allow for pre-tax dollars to be pulled and then reallocated for reimbursement to the employee, and the tax savings in between is what funds the benefits. Employees thus get additional benefits and still have the same net take-home pay.
Many of the plans that attempt this are not fully in compliant with IRS guidelines, however, there are some that go above and beyond the others to ensure full compliance for matching utilization.
Additional rewards for the company include net positive results from federal employment tax savings and a reduction in worker’s comp costs.
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