What’s The Smartest Way To Reduce Payroll Tax Liabilities?

Every year, businesses nationwide unknowingly lose thousands of dollars due to outdated payroll structures and missed tax-saving opportunities. What’s more surprising is that many employers don’t even realize they’re overspending — or that there’s an easy, compliant solution to fix it.

That’s where the Lumara Plan steps in.

This fully managed plan leverages a combination of Section 125, Preventative Care Management (PCMP), and a Self Insured Medical Reimbursement Plan (SIMRP) to offer businesses a more innovative way to achieve payroll tax savings. Best of all? It comes at no cost to the employer, requires no changes to existing insurance, and guarantees compliance.

Why Traditional Payroll Models Cost You More

If your payroll model hasn’t changed in the last five to ten years, chances are you’re leaving money on the table — both as an employer and on your employees’ behalf.

Here’s what most outdated systems tend to do:

Miss out on tax-free benefits allowed under federal guidelines
Increase employer payroll tax liabilities unnecessarily
Offer little to no flexibility for today’s hybrid or remote workforce
Deliver lower overall value to employees despite higher costs

The Lumara Plan is built to solve these inefficiencies. It’s designed for today’s modern business environment and optimized to reduce payroll taxes while enhancing employee benefits and overall satisfaction.

Breaking Down the Lumara Plan

Unlike conventional benefit offerings, the Lumara Plan is built around a multi-layered, tax-advantaged structure that delivers immediate, measurable results.

Section 125 (Cafeteria Plan)

This allows employees to contribute pre-tax dollars towards specific benefit categories. It reduces their taxable income, meaning employees and employers get good payroll tax savings.

Preventative Care Management Plan (PCMP)

These include wellness programs like biometric screening, mental health services, and unlimited virtual care provider access. Preventive in its approach, this plan keeps long-term claim expenses low and promotes healthy preventive behaviors.

Self Insured Medical Reimbursement Plan (SIMRP)

This enables tax-free reimbursement for supplemental benefits, such as critical health insurance, disability coverage, and other essential services. These reimbursements help fill the gaps left by traditional health plans without adding complexity or cost.

Together, these three components create a comprehensive strategy to reduce payroll taxes while elevating the quality and accessibility of employee benefits.

For Employers: A High-Impact, Low-Effort Solution

If you want to maximize value without disruptive changes, the Lumara Plan fits seamlessly into your operations.

Key Benefits Include:

Significant savings — on average, $600 per W-2 employee per year
Zero out-of-pocket costs — no implementation or management fees
Claim reduction — businesses report an average of $1,400 saved in claims over three years
Quick rollout — fully implemented within 30–45 days
Instant savings — visible by the very first payroll cycle
Improved employee retention — better benefits translate to greater job satisfaction and loyalty

Thousands of employees benefit from the Lumara Plan, with businesses across multiple industries realizing immediate ROI.

For Employees: More Coverage, More Take-Home Pay

While employers enjoy substantial savings, employees also receive better support and greater financial flexibility.

What’s in It for Them?

An average 3–4% boost in net take-home pay, or roughly $100/month
Access to zero-copay, 24/7 telehealth services with real doctors and care coaches
Personalized wellness dashboards backed by Mayo Clinic tools
Supplemental coverage for mental health, life, critical illness, and disability
Additional options for spouses and dependents, with no extra complexity
No change to their current base salary or core health plan

Employees appreciate the Lumara Plan’s immediate value and simplicity. It’s an enhancement—not a replacement—that extends their healthcare coverage and compensation.

What Sets Lumara Apart?

The Lumara Plan isn’t a standard cafeteria plan with a new name. It’s a fully developed system that delivers results through seamless automation, legal compliance, and real-world ROI.

Here’s What Makes It Unique:

Built-in compliance — every part of the structure is legally vetted and designed for IRS adherence
No disruption — existing health plans stay the same, with no need to switch providers or brokers
Complete management — Lumara takes care of onboarding, administration, and employee education
Layered benefits — the combined structure of Section 125, PCMP, and SIMRP delivers more than any one plan alone

Instead of taking on additional admin, you hand it off — and watch the savings show up automatically.

Busting the Myths

Myth 1: “It sounds too good to be true.”
Truth: The savings come from shifting existing payroll expenses into compliant, tax-advantaged categories — no smoke, no mirrors.

Myth 2: “I don’t want to change my insurance.”
Truth: You don’t have to. The Lumara Plan is designed to work alongside your current offerings, not replace them.

Myth 3: “Our team won’t want to deal with something new.”
Truth: Lumara handles all employee education and onboarding. Once enrolled, employees see the value immediately in their paychecks and care access.

Myth 4: “There must be hidden costs.”
Truth: None. The plan is free for employers, and the small payroll deductions employees make are more than offset by their increased take-home pay and added benefits.

The Bottom Line: Real Savings, Real Simplicity

Reducing payroll taxes doesn’t have to be complicated — and it doesn’t require overhauling your benefits program. The Lumara Plan gives you a turnkey, no-cost solution that increases margins, decreases claims, and supports employee well-being.

Whether you’re a small business or a large organization, if you’re paying W-2 wages and want to improve your bottom line, this is the easiest way to start.