Regulatory Compliance & Legal Framework

Statutory Framework

The SIMRP program operates under established Internal Revenue Code provisions, federal labor guidelines, and ACA guidelines:

• IRC §105(b): Authorizes tax-free employer reimbursements for medical and preventive care expenses.
• IRC §125: Permits pre-tax employee salary reduction arrangements for eligible benefit programs.
• IRC §213(d): Defines qualifying medical and preventive wellness services eligible under the plan.
• ACA Compliance: Complements existing employer-sponsored major medical insurance without altering core coverage or minimum essential coverage (MEC) requirements.

Employer Protection & Documentation

Our team provides end-to-end compliance administration, including formal plan documents, summary plan descriptions (SPD), Section 125 cafeteria plan amendments, and coordination with your existing payroll system to ensure full audit-readiness.