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VCAMP

Validated Care Ancillary Management Program

Optimize Benefits, Improve Tax Efficiency

Redirect Payroll Tax Savings Toward Eligible Benefits—With No Additional Budget Impact

VCAMP is designed to help employers enhance employee benefits by reallocating payroll tax savings through a compliant Section 125/105 structure—without increasing budgeted compensation costs.
Learn How VCAMP Works

Discover VCAMP

Enhance Your Section 125 Strategy with Confidence

At MoTek Insurance, we believe your benefits should work harder, without costing more. That’s why we created VCAMP, a smarter way to use your existing Section 125 plan to reduce tax liability and enhance employee benefits—at no net cost to the employer or employee.
VCAMP allows employers to allocate pre-tax dollars toward employees’ medical, dental, and vision premiums. It also funds HSA/FSA debit cards for first-dollar medical expenses—automatically and efficiently.
What Sets VCAMP Apart?
  • Fixed Indemnity Plan: Predetermined reimbursement amounts for eligible expenses
  • Fully Automated: No need to track receipts or submit paperwork
  • Pre-Tax Advantage: Reduce both employee and employer tax liability
  • No Impact on Take-Home Pay: Full reimbursements without reducing net income
  • With healthcare costs rising each year, VCAMP offers a smarter, simpler way to ease the burden.

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Eligible Benefits Under VCAMP

VCAMP is structured to support reimbursement of qualified medical expenses in alignment with Internal Revenue Code §213(d). All eligible reimbursements must be consistent with the plan’s governing documents and substantiated in accordance with IRS regulations.

Coverage is limited to expenses that meet the definition of medical care under IRC §213(d) and may include the following, depending on plan design:

Examples of Eligible Expenses:

  • Health Insurance Premiums:Reimbursements may be available for employee-paid premiums, such as individual medical, dental, or vision plans, where allowed under the plan and applicable regulations.
  • Dental, Vision, and Ancillary Services: Qualified out-of-pocket costs for §213(d)-eligible example services such as dental cleanings, eye exams, and other supplemental health care expenses.
  • FSA/HSA-Compatible Medical Expenses: Eligible out-of pocket expenses—including copays, prescriptions, and other IRS-qualified items—may be reimbursed in accordance with the plan’s terms and applicable FSA or HSA coordination rules.

How does VCAMP work?

VCAMP is a structured enhancement to your existing Section 125 plan. It integrates three coordinated components—WIMPER, VCAMP, and SIMERP—designed to align with IRS Sections 125, 105, and 213(d). The program is structured to support compliant tax savings and employee benefit reimbursements without increasing employer compensation costs.

The 3-Step VCAMP Process:

(Wellness Integrated Medical Plan Expense Reimbursement Program): Uses pre-tax payroll deductions to reduce taxable income under a Section 125 cafeteria plan.

Captures and manages payroll tax savings and coordinates benefit delivery

(Self-Insured Medical Expense Reimbursement Program): Structured under IRC §105(b) and §213(d) to deliver post-tax reimbursements for substantiated medical care expenses, using a defined Summary of Benefits and participation-based eligibility. Designed to comply with IRS memoranda and avoid classification as a fixed indemnity arrangement.

VCAMP is designed to preserve employee take-home pay while delivering compliant, substantiated reimbursements—not fixed or automatic payments.
All benefits must be defined in the Summary of Benefits and supported by documentation.

This example is provided for informational and educational purposes only. VCAMP is designed to operate within the guidelines of IRS Sections 125 and 213(d), and is subject to eligibility criteria, plan design, and applicable nondiscrimination testing. All figures shown are illustrative and may vary based on employee demographics, benefit elections, and payroll structure.

Where Would You Rather See $20,000 Go?

You can continue sending it to payroll taxes…
Or you can reallocate those same dollars through VCAMP
—supporting substantiated employee benefits like health
insurance, dental, and vision—without increasing your
compensation budget.


💡 The dollars are being spent either way.
✅ Why not structure them for greater impact?

VCAMP in Action: Side-by-Side Payroll Comparison

For optimal viewing, please rotate your device.

SEMI Monthly Payroll Sample Current Payroll Payroll with VCAMP
Annual Salary
$60,000.00
$60,000.00
Gross Semi-Monthly Wages
$2,500.00
$2,500.00

Section 125 Payroll Pre-Deduction WIMPER
Payroll Deduction
WIMPER Deduction
Medical
$200.00
$200.00
401K
$150.00
$150.00
“WIMPER” [Pre-Tax Deduction]
$850.00
Taxable Income
$2,150.00
$1,300.00
State Income Tax:CA
$27.28
$0.00
California SDI EE
$27.60
$17.40
Federal Tax
$173.06
$71.06
Medicare Tax
$33.35
$21.03
Social Security Tax
$142.60
$89.90
Taxes
$403.89
$199.39
VCAMP Payroll Tax Savings
$204.50
Total Payroll Tax & VCAMP
$403.89
$403.89
PayCheck
$1,746.11
$896.11

Section 125 Post Tax Reimbursement SIMERP
“SIMERP” [Post-Tax Reimbursement]
$850.00
Take Home Pay
$1,746.11
$1,746.11

VCAMP Section 125 Payroll Tax Savings
Semi-Monthly VCAMP Tax Savings
$204.50
$65.02
Monthly VCAMP Payroll Tax Savings
$409.00
$130.04
Annual Savings Per Employee
$4,908.00
$1,560.48
SEMI Monthly Payroll Sample Current Payroll Payroll with VCAMP
Annual Salary
$60,000.00
$60,000.00
Gross Semi-Monthly Wages
$2,500.00
$2,500.00

Section 125 Payroll Pre-DeductioNS
Payroll Deduction
WIMPER Deduction
Medical
$200.00
$200.00
401K
$150.00
$150.00
WIMPER (Pre-Deduction)
$850.00
Taxable Income
$2,150.00
$1,300.00
State Income Tax CA
$27.28
$0.00
California SDI Tax
$27.60
$17.40
Federal Tax
$173.06
$71.06
Medicare Tax
$33.35
$21.03
Social Security Tax
$142.60
$89.90
Taxes
$403.89
$199.39
VCAMP Payroll Tax Savings
$204.50
PayCheck
$1,746.11
$896.11

Section 125 Post Tax Reimbursement SIMERP
SIMERP (Post Tax Reimbursement)
$850.00
Take Home Pay
$1,746.11
$1,746.11

VCAMP Section 125 Payroll Tax Savings
Employee
Employee FICA Tax Savings
Semi Monthly Tax Savings
$204.50
$65.02
Monthly Tax Savings
$409.00
$130.04
Annual Savings Per Employee
$4,908.00
$1,560.48
SEMI Monthly Payroll Sample Current Payroll Payroll with VCAMP
Annual Salary
$60,000.00
$60,000.00
Gross Semi-Monthly Wages
$2,500.00
$2,500.00

Section 125 Payroll Pre-DeductioNS
Payroll Deduction
WIMPER Deduction
Medical
$200.00
$200.00
401K
$150.00
$150.00
WIMPER (Pre-Deduction)
$850.00
Taxable Income
$2,150.00
$1,300.00
State Income Tax CA
$27.28
$0.00
California SDI Tax
$27.60
$17.40
Federal Tax
$173.06
$71.06
Medicare Tax
$33.35
$21.03
Social Security Tax
$142.60
$89.90
Taxes
$403.89
$199.39
VCAMP Payroll Tax Savings
$204.50
PayCheck
$1,746.11
$896.11

Section 125 Post Tax Reimbursement SIMERP
SIMERP (Post Tax Reimbursement)
$850.00
Take Home Pay
$1,746.11
$1,746.11

VCAMP Section 125 Payroll Tax Savings
Employee
Employee FICA Tax Savings
Semi Monthly Tax Savings
$204.50
$65.02
Monthly Tax Savings
$409.00
$130.04
Annual Savings Per Employee
$4,908.00
$1,560.48
SEMI Monthly Payroll Sample Current Payroll VCAMP/Wellness Payroll
Annual Salary
$60,000.00
$60,000.00
Gross Bi Weekly Wages
$2,500.00
$2,500.00

Section 125 Payroll Pre-Deduction WIMPER
Payroll Deduction
Medical
#200.00
#200.00
401K
$150.00
$150.00
WIMPER
$850.00
Taxable Income
$2,150.00
$1,300.00
State Income Tax:CA
$27.28
$0.00
California SDI EE
$27.60
$17.40
Federal Tax
$173.06
$71.06
Medicare Tax
$33.35
$21.03
Social Security Tax
$142.60
$89.90
Taxes
$403.89
$199.39
VCAMP Payroll Tax Reduction
$204.50
Total Payroll Tax & VCAMP
$403.89
$403.89
Pay
$1,746.11
$896.11

Section 125 Post Tax Reimbursement SIMERP
SIMERP
$850.00
Take Home Pay
$1,746.11
$1,746.11
Semi VCAMP Payroll Reduction
$204.50
Monthly VCAMP Payroll Reduction
$409.00

*Please refer to the table based on the colors in the boxes below.

Pre-Deduction WIMPER

  • Purpose: Provides preventative medical care for W-2 employees.
  • Tax Benefits: Uses pre-tax payroll deductions to reduce taxable income.
  • Reimbursement: Simplifies reimbursements with predefined benefits.

Payroll Tax Savings Related to VCAMP

  • Medicare Tax Savings: Reduced from $33.35 to $21.03 per pay period.
  • Social Security Tax Savings: Reduced from $142.60 to $89.90 per pay period.
  • Total Savings: $204.50 per pay period, $409.00 monthly.

Post-Tax SIMERP

  • Purpose: IRS-qualified program providing voluntary benefits at no cost to employers.
  • Integration: Paired with an ACA-approved medical plan.
  • Reimbursement: Dollar-for-dollar reimbursements with no reduction in take- home pay.

Reimbursement Process

Step 1: Participation: Employees participate in the VCAMP program.
Step 2: Pre-Tax Deductions: Pre-tax deductions are made from employees' payroll.
Step 3: Reimbursements: Employees receive dollar-for-dollar reimbursements based on their participation in the program.
Step 4: The reimbursement process ensures no reduction in employees' take-home pay. Since SIMERP is a post-tax reimbursement, no taxes are taken out, ensuring full dollar-for-dollar reimbursement.

VCAMP Implementation Guidelines for Employers

To help ensure successful and compliant VCAMP implementation, the following criteria are generally recommended:

  • Minimum of 15 actively employed W-2 employees participating in eligible benefit programs
  • Participant eligibility: Only W-2 employees may participate.
  • Ineligible individuals: Independent contractors (1099), S-Corp owners (more-than-2% shareholders), and tax-exempt workers are not eligible under current program guidelines.
  • Average annual W-2 compensation of approximately $60,000 or higher is recommended for optimal tax efficiency

Note: These criteria support alignment with IRS guidance and the structural integrity of the VCAMP model. Specific eligibility may vary based on plan design and organizational structure. A consultation with your MoTek Insurance advisor is recommended to confirm suitability.

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