Section 125 cafeteria plans provide a clever and strategic answer for companies wishing to assist their employees without incurring expenses or complexity. However, not all plans are created equal, and when you integrate Section 125 with additional health and tax-advantaged components, the results can be game-changing for your business and your people.
Harmoni125 is one of the most compliant and benefit-rich programs available today. It leverages a Section 125 plan together with a Preventative Care Management Plan (PCMP) and a self insured medical reimbursement plan (SIMRP) to deliver meaningful, measurable value—without any disruption to your current benefits structure.
This blog will clarify precisely what sets this plan apart, how it functions, and why more companies are adopting this contemporary method to provide tax-free employee perks without extra expenses.
What Is a Section 125 Cafeteria Plan?
A Section 125 plan, also known as an employee cafeteria plan, allows employees to pay for eligible benefits using pre-tax dollars. Instead of having these costs deducted after taxes, they’re deducted before, reducing taxable income and effectively increasing the employee’s net take-home pay.
Eligible pre-tax expenses under a typical Section 125 plan may include:
- Health plan premiums
- Dental and vision coverage
- Dependent care expenses
- Certain medical costs are not covered by the plan
These plans help both the employee and employer save on taxes, but traditional cafeteria plans are limited in scope. That’s why programs like Harmoni125 are redefining what’s possible by combining the tax efficiency of Section 125 with proactive care and reimbursement components.
What Makes Harmoni125 Different?
Harmoni125 is not just a cafeteria plan—it’s a strategic, fully managed solution. It’s designed for employers who want to provide more value, without triggering new costs or disrupting current coverage. Here’s what sets it apart.
This program integrates three powerful components:
- Section 125 Plan – Allows employees to pay for select benefits pre-tax, lowering taxable income
- Preventative Care Management Plan (PCMP) – Encourages wellness and reduces future claims through proactive, no-cost services
- Self-Insured Medical Reimbursement Plan (SIMRP) – Reimburses employees for specific medical services, tax-free
This combination allows Harmoni125 to deliver wide-ranging benefits to employers and employees alike, making it one of the most robust and compliant offerings on the market today.
Employer Benefits: Tax Savings Without Added Costs
Most benefit upgrades come with a price. With Harmoni125, that’s not the case. It introduces real financial value without adding to your company’s payroll expenses or administrative load.
Employers who adopt Harmoni125 see:
- An average of $680/year in savings per W2 employee—that’s approximately $68,000 per 100 employees
- Zero out-of-pocket cost to implement or maintain the program
- Reduced healthcare claims, with companies seeing around $1,400 in savings per employee over 3 years
- Quick and seamless implementation in just 30–45 days
- Boosted retention and performance, thanks to improved benefit satisfaction
- Immediate and measurable impact on financial statements
These savings are made possible through compliant, strategic use of pre-tax dollars, redirected in a way that benefits both employer and employee.
Employee Benefits: More Coverage, Same Pay
While the employer saves money, the employee doesn’t lose a penny of take-home pay. That’s the beauty of Harmoni125—employees receive more comprehensive benefits without having to spend more or change anything in their existing coverage.
With Harmoni125, employees receive:
- No reduction in net take-home pay
- $0 copay Telehealth access 24/7, including physicians, nurses, and certified wellness coaches
- Robust mental health services, including therapy, counseling, and addiction recovery support
- Access to a personalized health dashboard and Mayo Clinic’s best-in-class wellness tools
- Tax-free coverage for Universal Life, Critical Illness, and Disability coverage
- Spouse and dependent enhancements are included at no extra cost
Everything is handled behind the scenes, and the experience is smooth, simple, and entirely guided.
Employees enjoy better access to care, more financial protection, and a stronger sense of being valued by their employer—all without giving up anything they already have.
Compliance, Automation, and Peace of Mind
If the idea of implementing a tax-advantaged benefit program sounds complicated, don’t worry. Harmoni125 is designed to be fully compliant and completely managed for you. It aligns with all IRS, ERISA, and Department of Labor regulations regarding Section 125, PCMP, and SIMRP plans.
That means:
- No risk of non-compliance
- No legal complexity for HR or leadership
- No need to alter your existing health plans
Every step—from employee education to payroll integration to ongoing reporting—is handled by experienced professionals. Your team stays focused on business, while we manage the benefits infrastructure in the background.
The Harmoni Care Difference: Quiet Impact, Big Results
At Harmoni Care, we know that business success starts with people, but we also know that good intentions aren’t enough when budgets are tight. That’s why Harmoni125 is built to strike the right balance: delivering meaningful benefits to your team without placing any financial burden on your business.
This isn’t about flashy perks or complex overhauls. It’s about behind-the-scenes value—the kind of quiet impact that leads to stronger teams, lower claims, and a healthier bottom line.
More than 30,000 employees are already enrolled in Harmoni125. Forward-thinking employers across industries are choosing it as a smarter, more sustainable way to care for their people.
Is Harmoni125 Right for You?
If you’re an employer looking to:
- Improve employee well-being without spending more
- Modernize your benefits offering without HR headaches
- Cut payroll tax waste
- Increase retention and satisfaction
- Comply with all relevant healthcare regulations
- Do more for your team without doing more work
…then Harmoni125 is a fit. And because implementation is fast and risk-free, you can begin seeing results in as little as a month.
Conclusion
Section 125 cafeteria plans have long been a tool for offering tax-advantaged benefits, but modern solutions like Harmoni125 go far beyond the traditional employee cafeteria plan. By combining Section 125 with a self-insured medical reimbursement plan (SIMRP) and a Preventative Care Management Plan (PCMP), Harmoni125 creates a powerful, behind-the-scenes solution that helps employers lower costs and improve care, all without disrupting existing coverage or changing take-home pay. For businesses looking to do more for their people while staying efficient and compliant, this is the kind of quiet impact that drives real results.
Ready to Learn More?
Harmoni125 empowers your business to offer more, without giving more. It’s time to align your employee benefits with the future of workplace care: cost-free, fully managed, and built to last.
Book your 10-minute consultation to see how it all works. Or get a free proposal today and start building a healthier business—one benefit at a time.