Turn Payroll
Into Profits.
A Self-Insured Medical Reimbursement Plan (SIMRP) converts your business's health benefit costs into pre-tax deductions — saving on both income taxes and payroll taxes simultaneously.
Self-Employed / 1099
Payroll: $80K–$150K
$6,000–$18,000
per year
2–5 Employees
Payroll: $150K–$400K
$11,000–$46,000
per year
6–15 Employees
Payroll: $400K–$1M
$38,000–$115,000
per year
16–50 Employees
Payroll: $1M–$3M
$91,000–$345,000
per year
Estimates based on typical business structures. Actual savings vary. Book a strategy session for a personalized analysis.
The Strategy Most Business Owners
Have Never Heard Of.
A Self-Insured Medical Reimbursement Plan (SIMRP) is an IRS-recognized employer benefit arrangement under Section 105 of the Internal Revenue Code. It allows a business to reimburse employees — including owner-employees — for qualified medical expenses using pre-tax business dollars.
The result: what was previously an after-tax personal expense becomes a deductible business cost. Your business saves on income taxes. You also save on payroll taxes (FICA). The employee receives the benefit completely tax-free.
Most business owners have never heard of this strategy — not because it's complex, but because most brokers don't know it exists. At Kieffer Insurance Group, we call it the "Turn Payroll Into Profits" strategy.
See the SIMRP Strategy in Action
Christine Kieffer breaks down exactly how the SIMRP “Turn Payroll Into Profits” strategy works and why most business owners have never heard of it.
How a SIMRP Works
Step by Step.
Establish the SIMRP Structure
Your business establishes a Self-Insured Medical Reimbursement Plan as a formal employer benefit. This is an IRS-recognized arrangement that qualifies as a business expense.
Employees Incur Medical Expenses
Employees (including owner-employees) pay for qualified medical expenses — premiums, deductibles, copays, prescriptions, and more.
Business Reimburses Tax-Free
The business reimburses those expenses using pre-tax business dollars. The reimbursement is a deductible business expense — not taxable income to the employee.
Double Tax Savings
The business saves on income taxes (deductible expense) AND payroll taxes (FICA). The employee receives the benefit tax-free. Both sides win.
Who Qualifies for
a SIMRP Strategy?
If your business pays W-2 wages — to employees or to yourself as an owner-employee — you may be eligible for significant SIMRP tax savings. The following business structures typically qualify:
- S-Corporations with W-2 employees
- C-Corporations with employees
- LLCs taxed as S-Corp or C-Corp
- Partnerships with W-2 employees
- Business owners who pay themselves W-2 wages
- Companies with 1 to 500+ employees
| Business Size | Annual Payroll | Est. Tax Savings |
|---|---|---|
| Self-Employed / 1099 | $80K–$150K | $6,000–$18,000 |
| 2–5 Employees | $150K–$400K | $11,000–$46,000 |
| 6–15 Employees | $400K–$1M | $38,000–$115,000 |
| 16–50 Employees | $1M–$3M | $91,000–$345,000 |
Who Qualifies?
- ✓ S-Corporations with W-2 payroll
- ✓ C-Corporations — most favorable
- ✓ LLCs taxed as corporations
- ✓ Partnerships with W-2 employees
- — Sole proprietors: alternative strategies available
Frequently Asked Questions
About SIMRP.
Related Health Insurance Strategies
Explore how SIMRP connects with your broader health benefit strategy.