Every business wants to offer better benefits, but not every business wants to pay more for them. The good news? You don’t have to. With Section 125 pre-tax deductions, employers and employees alike can save big, on taxes, healthcare costs, and claim expenses.
But what if you could go even further than a typical Section 125 cafeteria plan?
That’s where Harmoni125 by Harmoni Care comes in.
Our program takes the core advantages of section 125 pre-tax deductions and layers in a Preventative Care Management Plan (PCMP) and a Specialized Insurance Medical Reimbursement Plan (SIMRP) to create one of the most complete and compliant health plan tax benefit solutions on the market.
What Are Section 125 Pre-Tax Deductions?
Section 125 of the IRS Code allows employees to pay for certain qualified medical expenses, like insurance premiums and out-of-pocket costs, using pre-tax income. This reduces their taxable wages, increasing their take-home pay. For employers, it means reduced payroll taxes.
Here’s how the math works out:
- Employees save on federal, state, and FICA taxes
- Employers save on payroll taxes (Social Security, Medicare)
- Everyone wins, and no one pays out of pocket
Now multiply that impact across dozens or hundreds of employees. That’s a meaningful tax advantage.
How Harmoni125 Enhances the Health Plan Tax Benefit
Harmoni125 isn’t just a cafeteria plan, it’s a full health benefits platform. While it leverages Section 125, it adds two fully managed layers that expand coverage and deepen savings:
- PCMP: Offers preventative care access like telemedicine, annual exams, and urgent care.
- SIMRP: Covers medical reimbursements and fills coverage gaps, all without copays.
This layered structure ensures a richer health plan tax benefit for both employer and employee, with zero extra cost to your business.
Employer Benefits: Real Savings, No Disruption
When you implement Harmoni125, you unlock:
- $1,100/year savings per W-2 employee
- 5–10% reduction in total healthcare spend
- $1,400 in reduced claims over 3 years
- 30–45 day implementation
- Zero out-of-pocket cost
- Higher retention and job satisfaction
This means you can reinvest in growth while offering a stronger benefits experience.
Employee Benefits: More Coverage, Same Paycheck
Thanks to section 125 pre-tax deductions, employees get more without seeing any decrease in take-home pay. Plus, all benefits extend to spouses and dependents at $0 copay.
Here’s what’s included with Harmoni125:
- 24/7 Telemedicine & Virtual Care
- 12 Annual Family Care Visits
- Mental Health & Counseling
- In-Person Urgent Care Access
- RX Coverage with No Copays
- Mayo Clinic Tools & Wellness Dashboard
- Minimal Essential Coverage (MEC)
- Group Term Life Insurance ($60–$100/month value)
- Vision, Dental & Prescription Discounts
Employees keep more money and gain peace of mind, all with no added cost to them or you.
Turn Key Compliance and Support
Harmoni Care manages everything:
- Plan setup and IRS documentation
- Payroll and HR integration
- Employee enrollment and communication
- Year-round support
There’s nothing to lose, and a smarter benefits strategy to gain.
How Harmoni125 Protects Employers and Employees from Compliance Risks
One of the biggest challenges in offering employee health benefits is staying compliant with constantly changing IRS and Department of Labor (DOL) regulations. Non-compliance can result in steep penalties, unexpected audits, and financial strain for both employers and employees. That’s why Harmoni125 was designed with compliance built in.
Our program ensures that every layer, from Section 125 pre-tax deductions to PCMP and SIMRP, is fully aligned with IRS Section 125, ERISA, and ACA requirements. This means no gray areas, no risky shortcuts, and no surprises during tax season. Employers benefit from peace of mind knowing that their payroll integrations, documentation, and reporting are handled correctly. Employees, in turn, can confidently access their benefits without worrying about unexpected tax implications or coverage gaps.
Harmoni Care’s compliance specialists provide continuous monitoring and updates, ensuring your plan remains current as regulations evolve. Instead of burdening your HR and payroll teams with added complexity, we handle the heavy lifting, keeping your business fully protected while you focus on growth.
With Harmoni125, compliance isn’t an afterthought; it’s a core part of the solution.
Why Choose Harmoni125?
With over 30,000 employees enrolled, Harmoni125 is helping businesses nationwide reduce costs and deliver meaningful healthcare. By using Section 125 pre-tax deductions as the foundation and building on it with PCMP and SIMRP, we’re setting a new standard in benefit delivery. We handle your health plan tax benefits, while you handle your businesses.
It’s Time to Rethink Your Health Plan Tax Benefit
If you’re ready to reduce costs, boost retention, and deliver a better benefits experience, Harmoni125 is your next move. Get a Free Proposal and see what smarter savings look like.