Money stress is everywhere. Employees are juggling bills, rent, groceries, and healthcare costs, and employers are trying to stretch budgets while keeping their teams happy. One smart move that actually makes a difference is using payroll pre tax deductions through a section 125 health care plan, like the Lumara Plan. 

It’s not flashy, but it works. Employees get more take-home pay, families get coverage, and employers save money. Win-win.

What Are Payroll Pre-Tax Deductions?

Here’s the deal. Employees can contribute to benefits prior to paying taxes thanks to payroll pre-tax deductions. As a result, employers save money on payroll taxes, less is taxed, and more goes home. Everyone gets a little financial breathing room.

The Lumara Plan takes full advantage of section 125 health care plan. Employees get access to telemedicine, mental health support, preventive programs, and all of it at $0 copay. And yes, that includes their families, too.

Why Employers Should Care

Most employers don’t realize how much they can save. With the Lumara Plan, you’re looking at roughly $600 saved per W-2 employee per year and 5 to 10 percent off your total healthcare costs. That’s real money that can go back into the business or into better perks for your team.

Offering benefits like this goes beyond the numbers and demonstrates to your staff that you genuinely care. It keeps your team happier and healthier, lowers turnover, and aids in retention.

Why Employees Actually Benefit

Financial wellness is more than just numbers. It’s peace of mind. It’s feeling like you can handle life without constant stress about money or medical bills. Payroll pre-tax deductions make that possible. On average, employees see about $100 extra per month in take-home pay. That’s not pocket change.

The Lumara Plan goes further with family coverage. Everyone receives the benefits, including spouses and dependents, at no additional cost. This reduces anxiety when a family member becomes ill and eliminates the need to deal with unforeseen medical expenses.

What the Lumara Plan Covers

This isn’t just a handful of benefits slapped together. The Lumara Plan is packed with stuff that actually matters:

• 24/7 Telemedicine and Virtual Care – Skip the waiting room, get care when you need it
  
• Employee Assistance Program (EAP) – Help with mental health, stress, or just life
  
• Mental Health and Counseling – Support for anxiety, depression, or workplace stress
  
• Mayo Clinic Programs – Backed by top-tier medical experts
  
• Addiction Recovery Support – Help for employees and their families getting through recovery
  
• Couples Counseling and EAP – Because life and relationships get complicated
  
• Health Vitals Facial Scan Tool – Quick health check and early warnings
  
• Diet and Stress Programs – Simple programs to help employees live healthier
  
• $0 Copays – Every benefit, every family member, no cost
  

These benefits aren’t just nice-to-haves. They’re practical. Employees can actually use them without worrying about breaking the bank.

Family Coverage Makes a Difference

Here’s the kicker. A lot of plans leave families out. Lumara Health doesn’t. Spouses and dependents get the same $0 copay benefits as the employee. That reduces stress, builds trust, and keeps employees feeling like their whole life is supported, not just their job.

Taxes Work in Everyone’s Favor

This is where the 125 plan benefits get really smart. Because the contributions are pre-tax, employees lower their taxable income, and employers save on payroll taxes. That’s extra money in pockets for everyone.

The figures quickly mount up for a business with hundreds or even thousands of workers. reduced healthcare costs, reduced taxes, and increased funding for other projects. It’s a simple victory.

Getting Employees Onboard

None of this matters if employees don’t understand it. Make it easy to explain: telemedicine, counseling, $0 copays, family coverage. Show them the real value.

Emails, one-on-one conversations, webinars, or whatever it takes. Employee engagement increases benefit utilization, which has a greater effect on both your company’s and employees’ well-being.

The Bottom Line

Payroll pre-tax deductions do more than adjust numbers on a paycheck. With the Lumara Plan, employees get real financial relief, seeing about one hundred dollars more in take-home pay each month while accessing healthcare and support at zero copay. That alone takes a huge weight off their shoulders.

Families benefit just as much. Spouses and dependents get the same telemedicine, counseling, and wellness programs without paying out of pocket. When a household feels supported, everything else feels a little lighter.

Employers win too. Saving six hundred dollars per W2 employee and cutting healthcare costs by up to ten percent creates room to grow, invest, and genuinely support the people who make the business run.

Take the first step toward real financial wellness for your team: Explore the Lumara Plan

FAQ

What are the benefits of payroll deduction?

Automation​‍​‌‍​‍‌​‍​‌‍​‍‌ of money saving and paying for necessities is made more convenient with the method of money moving, which is done automatically. There is no juggling, forgetting, or scrambling at the end of the month.

How do you maintain financial wellness?

You stay consistent. You perform budgeting in an honest manner, employ appropriate instruments, and establish systems that help you maintain your progress even when your life is disordered.

What do you feel contributes most to your having good financial wellness?

Predictability. The extent of your stress due to money becomes less, and your decisions become much clearer when your money comes in a continuous and orderly ​‍​‌‍​‍‌​‍​‌‍​‍‌manner.

How to help employees who are struggling financially?

Give them access to real support. Useful benefits, fair pay, pre-tax options, and simple guidance go a long way in easing that pressure.