Being an employer is all about making wise choices—not just for your bottom line, but for your team as well. One of the largest ongoing costs for employers? Payroll taxes. But imagine if there were a way to legally lower those taxes without adding a penny more to your budget. That’s where Harmoni125 comes into play.
Harmoni125 is a single, complete benefits solution that combines a Section 125 pre-tax deduction strategy with a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP). In simple language, it’s one of the most compliant, expense-savvy strategies for taking your company’s benefits to the next level and reducing payroll tax burden.
Let’s deconstruct it so you can see exactly how it works—and why over 30,000 employees are already enrolled.
What is a Section 125 Plan?
Section 125 of the IRS tax code permits employers to provide employees with the opportunity to pay for certain benefits, such as healthcare or life insurance, using pre-tax dollars. This lowers the employee’s taxable income, which also translates to lower payroll taxes for you as the employer.
But Harmoni125 is not merely a standard cafeteria plan. It features a Section 125 pre-tax deduction as part of a more comprehensive, smarter approach that adds two essential elements:
A Preventative Care Management Plan (PCMP), with an emphasis on proactive health care and wellness
A Self Insured Medical Reimbursement Plan (SIMRP), with additional insurance coverage such as critical illness and disability
When you put all three together, you have a fully compliant, plug-and-play solution that pays off for everyone—without upending current plans or costing anyone an extra cent.
The Harmoni125 Advantage: It’s Not Just Tax Savings—It’s Total Harmony
HarmonicCare was founded on the principle that employers should not have to sacrifice caring for their employees with one hand and guarding their bottom line with the other. Harmoni125 makes that a reality.
Here’s how:
Employer Benefits:
- Save $600–$800 per employee per year in payroll taxes (~$68,000 per 100 employees)
- Zero out-of-pocket expense to implement or maintain
- 30–45 day implementation with complete administrative support
- Lower healthcare costs (average $1,400 savings over three years) per employee
- No disruption to current benefits or providers
- Enhanced retention, morale, and performance from employees
Employee Benefits:
- No reduction in take-home pay
- $0 copay 24/7 Telehealth with access to doctors, nurses, and coaches
- Access to Mayo Clinic tools and a personal wellness dashboard
- Mental health and counseling services (including addiction treatment)
- Family-wide coverage: spouses and dependents are covered
- Built-in protection with Universal Life, Disability, and Critical Illness benefits
These aren’t perks—these are practical, valuable services your team will use. And since Harmoni125 features a Section 125 pre-tax deduction design, you and your employees get to keep more of your earnings without having to do anything differently about your existing arrangement.
Why Harmoni125 Distinguishes Itself from Traditional Plans
Classic Section 125 plans merely scratch the surface. Harmoni125 takes it a step further by integrating proactive care and tax savings in one, streamlined solution.
What sets it apart:
- It’s completely managed. We take care of everything from implementation to day-to-day compliance, so you don’t have to.
- It’s cost-neutral. No additional budget needed, no surprise fees.
- It’s benefit-rich. Employees receive access to high-value health services without sacrificing anything in return.
- It’s behind the scenes in the best sense. Harmoni125 operates quietly in the background, enhancing your business without interfering.
And because we know that balance is important, Harmoni125 was created to unite efficiency and care. The objective? A win-win situation where your business runs in harmony with your people’s well-being.
How the Section 125 Pre-Tax Deduction Works in Your Favor
By offering qualified benefits through a pre tax Section 125 arrangement, you’re lowering your total payroll base. That means fewer dollars are subject to employer-side payroll taxes, like:
- FICA (Social Security and Medicare)
- FUTA (Federal Unemployment Tax Act)
- State unemployment contributions
On average, this results in $600–$800 in savings per employee, per year. Multiply that by the size of your workforce, and you’re looking at a serious improvement to your bottom line, without needing to make cuts or raise prices.
Frequently Asked Questions
Is this just another cafeteria plan?
No. Harmoni125 incorporates Section 125 but adds a completely managed PCMP and SIMRP in one package, providing more comprehensive and compliant benefits than a traditional cafeteria plan.
Will it intrude upon our existing health benefits?
Not in the least. Harmoni125 is specifically built to complement your current coverage. You don’t have to switch providers, networks, or brokers.
Will our employees notice a change in their paychecks?
Yes—but positively. Their take-home pay remains the same, and they receive access to valuable services they wouldn’t otherwise enjoy. No surprises, no hidden deductions.
Is it difficult to roll out?
No. Our team manages the setup, employee enrollment, and compliance. Most businesses are fully live within 30–45 days.
What kind of companies get the most value from Harmoni125?
Businesses with W2 workers in a range of industries—from healthcare to supply chain to retail—can benefit. If you have 25 or more W2 workers, Harmoni125 is an option to consider.
Ready to Make Payroll Taxes Work for You?
Are you fed up with having payroll taxes eat into your margins while attempting to provide benefits your team will actually appreciate? It’s time to flip the equation.
Harmoni125 is your chance to:
- Cut payroll tax waste
- Enhance employee satisfaction and retention
- Introduce valuable benefits without additional cost
- Walk in harmony with your staff and your business objectives
Over 30,000 employees are already part of Harmoni125. Join the increasing number of savvy employers who are opting for balance rather than trade-offs.
Schedule your 10-minute consultation today or ask for a free proposal—let’s create a better benefits experience together.