What Is a Section 125 Partner Program?

By Brent Huling, independent agent · Last updated: October 20, 2026

A Section 125 partner program lets independent advisors — insurance brokers and CPAs — introduce their employer clients to a benefits program built on Sections 125 and 105 of the tax code, and earn recurring income on every enrolled employee. The partner makes the introduction and stays the client’s trusted advisor; a back-end team handles the presentation, documentation, enrollment, and administration. In the SIMERP partner program, that income is $15 per enrolled employee, per month.

What is Section 125, in plain terms?

Section 125 of the tax code — in the code since 1978 — is the section that lets employees pay for certain benefits with pre-tax dollars. When pay runs through a Section 125 structure, the wages it covers aren’t subject to payroll tax, which lowers the tax bill on both sides of the paycheck: the employee’s and the employer’s. SIMERP — a Self-Insured Medical Expense Reimbursement Plan — pairs that Section 125 structure with a Section 105 reimbursement plan to turn the savings into a full benefits program.

What does the partner actually do?

Two things: spot the clients who fit, and make the introduction. After that, the back end runs the client presentation, prepares the Section 125 documentation and paperwork, enrolls the employees, administers the program month to month, tracks commissions in a back office the partner can check, and fields client support questions. The partner’s ongoing role is the relationship itself — being the trusted advisor who brought the client the savings. The full breakdown is on the SIMERP partner program overview.

Which employers qualify?

Employers with 10 or more full-time W-2 employees (30+ hours per week). Eligibility runs on full-time headcount — not on who enrolls in the company health plan — so employees covered on a spouse’s plan still count. The employer keeps its existing health plan exactly as it is; SIMERP layers on top. The employer savings analysis comes back within 72 hours of an introduction.

What do employers and employees get?

The employer recovers roughly $640 per eligible employee per year in payroll taxes — flat, per eligible employee. Employees see $100–$300 more per month in take-home pay (it varies by salary) and get no-copay telehealth, urgent care, and prescriptions. And fewer than 5% of eligible companies use a Section 125 offset like this today, which is why the advisor who introduces it stands out. What that adds up to for the partner is covered in how much employee benefits partners earn.

Who can become a Section 125 partner?

Insurance brokers and CPAs who already advise employers. The two doors into this program are the partner program for insurance brokers and the partner program for CPAs. Admission is selective — a maximum of 50 partners — and every application is reviewed personally by Brent Huling, with a reply within one business day.

Frequently asked questions