If you’re offering employee health benefits, chances are you’ve heard about a Section 125 plan, often called a benefits cafeteria plan. But what really holds this program together is something most employers overlook: the Section 125 plan document.
At Harmoni Care, we believe understanding this document is key to unlocking the full value of our Harmoni125 program, a fully managed and compliant health benefit platform built on Section 125, PCMP, and SIMRP.
Here’s what you need to know.
First, What Is a Section 125 Plan?
A Section 125 plan lets employees pay for eligible health expenses, like premiums, dental, vision, and more, using pre-tax dollars. This reduces taxable income for employees and lowers payroll taxes for employers.
But not all Section 125 plans are created equal.
Harmoni125 enhances the basic cafeteria plan by integrating two powerful components:
- Preventative Care Management Plan (PCMP)
- Specialized Insurance Medical Reimbursement Plan (SIMRP)
This creates one of the most benefit-rich, cost-effective, and compliant cafeteria plans available today.
Why the Plan Document Matters
A Section 125 plan document is the official paperwork required by the IRS to prove that your cafeteria plan exists and is compliant.
It spells out:
- What benefits are offered
- Who’s eligible
- How pre-tax contributions are handled
- Procedures for enrollment, changes, and claims
If you don’t have a plan document, or if it’s outdated, your business risks IRS penalties and loses tax advantages for both employer and employee.
Why a Section 125 Plan Document Is Non-Negotiable
Many employers think that setting up a Section 125 cafeteria plan is as simple as offering pre-tax health benefits. But the truth is, without the proper plan document, the entire structure falls apart. The IRS requires every Section 125 plan to be backed by a written, up-to-date plan document. Without it, employers lose compliance, employees lose tax advantages, and the business risks unnecessary penalties.
A Section 125 plan document is more than just paperwork. It defines the framework of your benefits cafeteria plan, what benefits are included, which employees are eligible, how pre-tax deductions are processed, and the rules around enrollment or mid-year changes. Think of it as the blueprint that ensures your benefits strategy is both legally compliant and financially optimized.
That’s exactly where Harmoni125 makes the difference. Instead of leaving HR teams to manage complex legal requirements, our platform provides a fully documented, audit-ready plan. From drafting the Section 125 plan document to integrating the Preventive Care Management Plan (PCMP) and Specialized Insurance Medical Reimbursement Plan (SIMRP), everything is handled for you. This means no guesswork, no compliance gaps, and no risk of IRS pushback.
Beyond documentation, Harmoni125 ensures that your employees enjoy the most benefit-rich cafeteria plan available today, with $0 copay coverage for all services, family protection, telemedicine, RX, dental, vision, and group term life insurance valued at $60–$100/month. Employers save an average of $1,100 per W-2 employee annually, while reducing overall healthcare costs by 5–10%.
When compliance meets care, everyone wins. With Harmoni125, you’re not just offering benefits, you’re providing a fully managed system that protects your business and maximizes employee well-being.
Harmoni125: Fully Documented, Fully Managed
When you enroll in Harmoni125, you get more than a tax-saving benefit plan. You get a fully compliant, audit-ready system, set up and managed for you.
We provide:
- Section 125 plan document creation
- PCMP & SIMRP documentation
- IRS-compliant onboarding & tracking
- Employee benefit summaries & enrollment support
- Year-round updates and compliance reviews
It’s hands-off for your HR team, and completely seamless for your employees.
Big Benefits Backed by Smart Compliance
With Harmoni125, your business can:
- Save $1,100 per W-2 employee per year
- Reduce healthcare costs by 5–10%
- Implement in 30–45 days with no disruption
- Reduce claims by $1,400 over 3 years
- Stay fully compliant with IRS regulations
Your team gets:
- $0 Copay Coverage for All Services
- 24/7 Telemedicine & Urgent Care
- RX, Vision, Dental & Mental Health Support
- Group Term Life Insurance (valued at $60–$100/month)
- Family (Spouse & Dependent) Coverage
All at no out-of-pocket cost to the employee or the employer.
Why Harmoni Care?
More than 30,000 employees are already enrolled in Harmoni125. We specialize in helping businesses unlock the full financial and wellness potential of their benefits cafeteria plan, without the administrative burden.
We don’t just give you a plan. We give you the documentation, compliance, and peace of mind that come with a fully managed program.
Ready to Simplify Benefits and Maximize Savings?
Let us handle the Section 125 plan document and everything that comes with it.
Get a Free Proposal today and see how Harmoni125 transforms benefits and compliance into a single, smart solution.