Each year, companies throughout the U.S. overpay payroll taxes without realizing it, while workers lose out on strong, tax-free benefits. If you’re an employer seeking a more intelligent, cost-free method to build your team and your bottom line, it’s time to take a closer look at how the Lumara Plan saves you payroll taxes with a fully managed, compliant solution based on Section 125.

This is not a standard Section 125 benefit plan. The Lumara Plan takes the strength of Section 125 and adds two more elements: a Preventive Care Management Plan (PCMP) and a Specialized Insurance Medical Reimbursement Plan (SIMRP). Together, they form one of the most robust, benefit-rich employee solutions on the market, designed to create real savings for your business and enhanced support for your employees.

Let’s take a look at how it works and why the Lumara Plan is transforming the way today’s employers think about tax savings and employee well-being.

What Is the Lumara Plan and How Does It Work?

At its foundation, the Lumara Plan is designed to do two things:

• Assist businesses in lowering FICA payroll tax liabilities in a compliant, zero-cost manner.
• Provide valuable, zero-cost health benefits to employees—without decreasing take-home pay.

It accomplishes this by taking advantage of Section 125—an IRS-sanctioned plan that enables employees to pay for some benefits using pre-tax dollars. But while typical Section 125 benefit plans stop there, the Lumara Plan goes further.

By integrating Section 125 with a fully managed PCMP and SIMRP, the Lumara Plan is far more than just a tax-savings vehicle. It’s an overall employee wellness and financial benefit—one that’s quick to implement, simple to administer, and highly effective right out of the gate.

Key Features of the Lumara Plan

Here’s why Lumara shines:

It’s Fully Compliant — Constructed and maintained with strict compliance to IRS and healthcare regulations.

• It’s Cost-Free — No out-of-pocket investment for employers or employees to implement and maintain.
• It’s Automated — Easy setup and use with little time committed.
• It’s Impactful — Spurs cost savings while enhancing employee morale, retention, and wellness.

A Section 125 Benefit Plan—But Better

Most employers know about Section 125 benefits, but not the potential that is available when the benefits are combined with reimbursement and wellness care options. The Lumara Plan accomplishes exactly that—revealing additional coverage and savings that regular plans leave untapped.

By combining PCMP and SIMRP with a Section 125 design, the Lumara Plan offers:

• Reduced taxable wages = lower employer payroll taxes.
• Pre-tax health benefits = higher net pay for employees.
• Access to critical coverage = better physical and mental health outcomes.

How Employers Benefit — Real Tax Savings

If you’re looking to reduce payroll taxes without sacrificing employee benefits, the Lumara Plan delivers. On average, employers can save around $600 per employee, per year in FICA tax reductions. That’s $60,000 in annual savings for every 100 W-2 employees, with no new budget required.

These savings result from lower taxable employee income that the plan participants earn. When the eligible benefits are delivered pre-tax via the Section 125 benefit design, payroll taxes for the employer decrease automatically. And thanks to Lumara’s automated rollout, these shifts occur without inflicting admin agony or HR intricacy.

Employer Benefits Summary:

• ~$600/year in FICA tax savings per W2 employee
• $60K/year for 100 employees
• No out-of-pocket expense
• Less claims (~$1,400 over 3 years)
• Quick 30–45 day implementation
• Increases retention, loyalty, and performance

How Employees Gain — Health Care Support + Larger Paychecks

One of the strongest aspects of the Lumara Plan is that it can provide employees with more—without raising their base pay or adding to their expenses.

The majority of employees enjoy a 3–4% boost in their net paycheck due to the plan’s tax-favored design. That’s about $100 more per month in take-home pay—funds they can use to help their families and enhance quality of life.

And that’s only the start. The Lumara Plan also offers:

• $0 copay 24/7 telehealth visits
• Wellness, nutrition, and mental health resources from the Mayo Clinic
• Universal life, disability, and critical illness protection
• Extended benefits for spouses and dependents

That means staff receive additional help in all facets of life—instantly, without touching their wallets.

Group 2 Employee Benefits Overview:

• 3–4% net wage boost (~$100/month)
• $0 copay telemedicine, coaching, wellness
• Mayo Clinic applications & dashboard
• Life, disability, and serious illness coverage
• Family improvements & spouse/dependent benefits
• Give up out-of-pocket barriers and welcome a stronger, healthier staff.

Not a Tax Mechanism—A Change in Culture

Most benefit plans concentrate single-mindedly on healthcare expense or compliance. The Lumara Plan does better—it accommodates forward-thinking, people-centered cultures in which care and savings are a partnership.

When companies adopt Lumara, they’re declaring:

• “We care about our employees’ well-being.”
• “We want to cut the waste of extra taxes.”
• “We believe in offering more without costing more.”

It’s a more intelligent, more empathetic way to manage your workforce—one that enables companies to compete for top talent and drive sustainable financial results.

Real Results, Real People

Over 40,000 employees are already on board with the Lumara Plan and benefiting from it on a daily basis. In retail, healthcare, education, and manufacturing, companies of every size are witnessing the difference that comes from putting employee care alongside tax-savvy strategy.

Brand Value: Why Employers Choose Lumara

Lumara was founded on a simple premise: employees deserve more support, and employers deserve more margins.

Annually, companies inadvertently spend thousands in payroll taxes as employees forgo valuable health benefits. Lumara is changing that.

Our strategy:

• Completely compliant
• Totally managed
• Zero expense
• Zero interference with current benefits
• 100% committed to mutual benefit

When you save payroll taxes and increase employee satisfaction with one action, everyone wins.

Don’t Let Your Tax Dollars Go to Waste

If you’re still paying full FICA tax on wages that could be structured pre-tax—or if your employees aren’t receiving value from your current benefits setup, you’re leaving money and morale on the table.

With the Lumara Plan, fixing that is easy. You don’t have to bring in consultants, revamp your health plan, or push your budget to the limit. In 30–45 days, you can be operating one of the most compliant, automated, and fiscally responsible benefit programs in the nation.

Ready to learn more?

Request a free proposal today or schedule your 10-minute consultation. Let us demonstrate how the Lumara Plan can save you on FICA taxes, empower your employees, and revolutionize the way your company approaches benefits.

Speak with an expert and schedule your 10-minute consultation today!