In a recent episode of the March to a Million podcast, I had the pleasure of speaking with WSN strategic partner, Josh Kelley from Citadel Benefits Group, who shared an innovative approach to employee benefits that can transform your business client's financial outlook and simultaneously enhance the lives of their employees.
If you represent small business owners feeling the squeeze from rising costs or struggling to attract and retain quality talent, this episode was a must-listen—and today, I want to highlight the incredible opportunity we discussed.
Josh introduced us to a program called the Self-Insured Medical Reimbursement Program (SIMRP). It’s a solution that not only creates substantial savings for businesses but also provides employees with access to enhanced benefits—all without increasing the financial burden on either side. Here’s a closer look at how this program works and why it's a game-changer for business owners across the country.
The Challenge: Rising Costs and Talent Retention
As a small business owner myself, I understand the constant balancing act of managing expenses while striving to offer valuable benefits to employees. When your business reaches a certain size, providing benefits becomes almost essential—not just from an altruistic standpoint, but as a competitive necessity in today’s job market. However, the costs associated with offering these benefits can be daunting, often making business owners hesitate to commit.
Josh explained that many small business owners feel stuck in a challenging situation. The rising costs of health insurance, liability expenses, and everyday operational costs can make offering additional employee benefits seem like an impossible task. Meanwhile, the labor market has evolved rapidly; what used to be a decent wage and benefits package five years ago may now be insufficient to attract or retain high-caliber talent. Simply put, offering competitive benefits has become a baseline requirement for any business hoping to thrive in today's environment.
The Opportunity: A Revolutionary Employee Benefits Model
Here’s where the opportunity comes in. Josh Kelley introduced us to the SIMRP, a program developed to leverage certain provisions of the tax code created around the Affordable Care Act. The program’s goal is to encourage preventive healthcare and wellness among employees, reducing long-term healthcare costs and financial strain on both employees and employers.
The SIMRP offers an average annual payroll tax savings of around $550 per employee for the employer. For a business with 25 employees, that’s an immediate savings of approximately $14,000 per year—money that can go straight to the bottom line. But that’s just the beginning. The program also provides employees with a robust wellness package, including free telehealth services, mental health support, financial counseling, and much more, without changing their take-home pay.
Why This Matters Now
In a time when finding and retaining employees has never been more challenging, offering a comprehensive benefits package can set a business apart. According to Josh, the marketplace has shifted, and employees are looking for more than just a paycheck; they’re seeking a supportive workplace environment with benefits that matter to them and their families. The SIMRP allows employers to meet these expectations without bearing the full brunt of the costs.
What makes this program particularly appealing is its simplicity and effectiveness. Employers save on payroll taxes, and employees receive meaningful benefits—all facilitated by existing tax codes designed to promote healthier lifestyles and reduce overall healthcare costs.
How It Works: The Nuts and Bolts
Here’s a breakdown of how the SIMRP functions:
Payroll Tax Savings: The program enables employers to save approximately $550 per employee per year on payroll taxes. This savings is realized almost immediately, allowing businesses to start seeing a positive impact on their bottom line from the first month.
Enhanced Employee Benefits: Employees gain access to a comprehensive wellness program that includes telehealth, mental health services, financial counseling, and more. On average, each employee receives around $150 monthly to spend on supplemental benefits, such as disability coverage or life insurance, all without reducing their take-home pay.
Simple Implementation: The beauty of the SIMRP is its ease of implementation. Josh and his team at Citadel Benefits Group take care of the heavy lifting, from setting up the program to ensuring compliance with all relevant tax codes. Employers need only to say “yes,” and the Citadel team handles the rest.
Broad Applicability: While there are a few exclusionary factors (such as the need for W2 employees and a health plan in place), the SIMRP is suitable for businesses of all sizes and industries, from small mom-and-pop shops to large corporations. Citadel Benefits Group works with clients across all 50 states, providing a tailored approach to meet the unique needs of each business.
Why You Should Consider the SIMRP
If you’re a business owner looking for ways to cut costs, improve employee satisfaction, and stay competitive in today's market, the SIMRP could be the perfect solution. It provides immediate financial relief while simultaneously adding value to your employee offerings—essentially solving two of the most pressing issues facing small businesses today.
For those in my March to a Million audience who are advisors or work with business clients, consider introducing them to this program. It’s a valuable tool that not only helps your clients save money but also allows them to offer benefits that could help them attract and retain top talent in a competitive job market.
Taking the Next Step
If you’d like to learn more about how the SIMRP can benefit your business or your clients, reach out to Josh Kelley directly. As mentioned in the podcast, you can email him at josh@citadelbg.com with my name in the subject line. He’ll be happy to walk you through the details, answer any questions, and show you exactly how this program can make a difference.
By embracing innovative solutions like the SIMRP, we not only strengthen our businesses but also create a more stable and supportive environment for our employees. It’s just one of the many ways we can all contribute to a better future for the families we aim to impact on our march to a million.
Stay tuned to the March to a Million podcast for more insights, strategies, and tools to help you grow your business and positively impact lives. Until next time, keep pushing forward on your journey
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