If you are a business owner who wants to provide more benefits and save simultaneously, it is crucial to know how Section 125 cafeteria plan benefits function. These benefits enable employees to purchase some benefits with pre-tax salary, which can reduce employers’ payroll taxes and enhance employee savings. Enhancing employee assistance without extra expenses is a wise decision.
However, not every benefit plan is created equally. Some take it to the next level by combining tax savings with enhanced health and wellness support.
In this blog, we’ll explain Section 125 cafeteria plan benefits, how they function, and why selecting the correct plan can make a huge difference for employers and employees alike.
What Is a Section 125 Cafeteria Plan?
A Section 125 cafeteria plan allows employees to pay for certain qualified benefits with pre-tax income. This reduces their taxable income and increases take-home pay without raising salary costs for the employer. The plan gets its name from the flexibility it offers, similar to choosing from a cafeteria menu, where employees can pick and choose their benefits.
However, the 125 flexible benefits plan offered by most providers often remains basic and underutilized. Harmoni125 takes this concept and expands it significantly to offer a more impactful, more compliant, and highly strategic solution for modern employers and their teams.
How Harmoni125 Goes Beyond Traditional Section 125 Plans?
Harmoni125 uses the benefits of Section 125 and adds two important healthcare programs to build one of the most complete and helpful plans for both employers and employees.
- Preventative Care Management Plan (PCMP): PCMP is all about keeping people healthy before problems get serious or expensive. It offers employees the following things:
- 24/7 access to doctors and nurses with no extra cost
- Help from wellness coaches
- Support for mental health, addiction, and counseling
- Personal health tools and wellness resources from Mayo Clinic
By helping early, PCMP can lower future healthcare costs and help employees feel better every day.
- Self-Insured Medical Reimbursement Plan (SIMRP): SIMRP helps employees get money back for certain medical expenses without changing their take-home pay. It adds extra support on top of the usual benefits, giving more care when it is needed. Employers provide this plan to make healthcare easier and more affordable for everyone.
Key Benefits for Employers
Harmoni125 is a great choice for employers who want real results without spending more money. It helps companies save, stay compliant, and take better care of their team at the same time.
Here is what employers can expect with Harmoni125:
- Save $1,100 per W2 employee every year
- Save even more with a 5–10% reduction in healthcare costs
- No out-of-pocket cost to get started
- Fewer healthcare claims, adding more savings over time
- Setup is quick and easy, usually takes 30 to 45 days
- Helps retain good employees and boost their performance
- See financial savings and team satisfaction from Day 1
Key Benefits for Employees
One of the best things about Harmoni125 is that employees get strong health and wellness support without losing any of their take-home pay. It is a way to give real care that fits into their daily lives.
Here is what employees get with Harmoni125:
- No change in take-home pay
- 24/7 Telemedicine and Virtual Care, no copay
- Mental Health & Counseling support through Employee Assistance Program (EAP)
- Mayo Clinic Programs for wellness and learning
- Group Term Life Insurance worth $60–$100/month, very, very important
- Minimal Essential Coverage (MEC)
- In-person urgent care and RX coverage, all at $0 copay
- Discounts on vision, dental, and prescriptions
- Family members (spouse and dependents) are also fully covered
Why Harmoni125 Is a Smarter Alternative?
Most firms have a standard 125 flexible benefits plan scheme, but Harmoni125 is entirely different. It is a completely managed program that benefits employers and employees in tangible, down-to-earth ways. Unlike static plans that only provide for tax savings, Harmoni125 offers additional health and well-being support through the Preventative Care Management Plan and Self-Insured Medical Reimbursement Plan. That is, your staff receives superior care at no extra cost to you.
Your business saves on healthcare claims and taxes, and your employees receive benefits such as 24/7 doctor visits, mental well-being support, and life cover. All this is taken care of for you, so it is simple to get started. Harmoni125 is an intelligent approach to investing in your staff and expanding your business securely and seamlessly.
Final Thoughts: All About Section 125 Cafeteria Plan
In today’s world, businesses need smart and simple ways to take care of their people and save money. Harmoni125 makes that possible. It includes the helpful tax benefits of a Section 125 cafeteria plan and adds extra support through health and wellness services. This means employees get better care without losing any pay, and employers save money without any added cost. It is a clear win for everyone. Choosing the right plan can make a big difference in how your team feels and how your business grows. If you want a better way to offer benefits, Harmoni125 is worth exploring.
Ready to See What Harmoni125 Can Do for Your Business?
Talk to our specialist with a Harmoni Care expert and discover how this unique plan can transform your employee benefits while driving real savings.