If you’re an employer aiming to do right by your employees while keeping an eye on your bottom line, understanding Section 125 allowable expenses could be a game-changer. However, it’s not just about implementing Section 125 on its own. The real benefit comes when you combine it with other powerful tools, such as a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP).
That’s precisely what Health Sphere’s Core360 program does—and it’s transforming the way businesses support their teams, all while boosting their bottom line.
In this post, we’ll break down how leveraging Section 125 allowable expenses can deliver real, measurable benefits to your employees and put more money back into your business. Let’s keep things clear and focused on the results.
What Are Section 125 Allowable Expenses?
Let’s first clarify the idea. Employees can use pre-tax money under Section 125 of the IRS code to pay for particular perks. Known as Section 125 allowable expenses, these advantages consist of:
- Health plan premiums
- Vision and dental care
- Copayments and deductibles
- Dependent care costs
- Wellness services
When employees use pre-tax dollars for these expenses, they lower their taxable income. The result? Employees take home more money, and businesses save on payroll taxes.
However, most employers stop at the basics, and that’s where they miss out on significant potential savings and benefits.
Why Traditional Section 125 Isn’t Enough
Traditional Section 125 plans are helpful, but they only scratch the surface of what’s possible. Health Sphere’s Core360 program is different—it combines Section 125 with a fully managed PCMP and SIMRP, creating one of the most compliant and benefit-rich solutions available today.
The result? More tax savings, richer benefits, and enhanced employee engagement—all at zero cost to the business.
How Core360 Works (And Why It’s Different)
Core360 is designed specifically for companies with 40,000 to 70,000+ employees, but its structure is scalable for any business looking for compliant, measurable savings.
Here’s what Core360 includes:
- Section 125 Allowable Expenses: Employees use pre-tax dollars for eligible health and dependent care costs.
- Preventative Care Management Plan (PCMP): Includes $0 copay telehealth, wellness support, and access to Mayo Clinic tools.
- Self-Insured Medical Reimbursement Plan (SIMRP): This covers specific medical expenses to reduce out-of-pocket spending further.
The results are clear:
- Employers save approximately $600 per W-2 employee annually.
- Employees see a 3–4% increase in their net paycheck (~$100/month).
- No disruption to current benefits.
- A fully compliant and automated rollout in just 30–45 days.
Why Employers Are Rethinking Section 125
Today, HR leaders and CFOs are prioritizing three key areas:
- Cost Control: Reducing expenses without compromising quality.
- Retention: Keeping employees happy and engaged.
- Compliance: Staying compliant with tax laws and regulations.
The rising costs of health insurance have made these concerns even more critical. By strategically using Section 125 allowable expenses through Core360, businesses can directly address these issues, helping both the business and its employees.
Here’s what Core360 brings to the table:
- No out-of-pocket costs for the employer.
- Reduced claims—saving an average of $1,400 over three years.
- Increased employee retention and satisfaction.
- Immediate impact on the company’s bottom line.
Best of all? Employees love the program.
What Employees Actually Get (And Why They Stay)
While tax savings might sound abstract, Core360 makes them tangible and real. Here’s what employees get with Core360:
- An extra $100/month in net take-home pay.
- $0 copay telehealth services (including access to doctors, mental health support, and wellness coaching).
- Access to Mayo Clinic health tools and personalized wellness dashboards.
- Enhanced coverage for Universal Life, Disability, and Critical Illness.
- Family benefits, including spouse and dependent coverage.
These benefits are practical, easy to understand, and improve daily life, without requiring employees to change their doctors or current health plans.
More Than Just Numbers: A New Standard of Care
Core360 isn’t just about saving money—it’s about improving overall employee well-being. The program offers real healthcare benefits, including:
- Mental health support: Employees have access to 24/7 mental health services.
- 24/7 medical access: Employees can access medical care whenever needed.
- Financial relief: Employees experience more financial breathing room with tax savings.
- Tools to stay healthier: Core360 equips employees with the tools they need to live better lives.
This leads to fewer sick days, improved morale, and a more engaged and committed workforce.
How to Maximize Section 125 Allowable Expenses with Core360
Here is how you may maximize Section 125 allowable expenses:
- Educate your team: Many workers are unaware of what qualifies for tax benefits. Core360 offers simple onboarding and training to help staff members maximize their savings.
- Automate administration: Core360 is fully managed, eliminating the need for paper-based administration and reducing HR team burdens.
- Align with preventative care: Pair allowable expenses with proactive health benefits like telehealth and wellness coaching to reduce claims over the long term.
- Track ROI: With an average savings of $600 per W-2 employee annually, Core360’s results are both fast and measurable.
A Smarter Way to Offer Benefits—Without Increasing Costs
Most businesses assume that better benefits come with higher costs. Core360 proves otherwise, offering a smarter benefits solution that delivers:
- Increased take-home pay for employees.
- Tax savings for the business.
- Better health outcomes for employees.
- Stronger employee retention.
And it doesn’t require:
- A budget increase.
- Changes to current health plans.
- Additional HR burdens.
Join the 250,000 Employee Movement
At Health Sphere, our mission is to impact over 250,000 lives by helping employers improve employee well-being and reduce tax waste, without changing their existing benefits or adding costs.
We believe:
- Better benefits should be simple.
- Compliance shouldn’t be complicated.
- Everyone should win.
With Core360, that’s exactly what we’re delivering.
Conclusion:
In today’s competitive business world, offering valuable employee benefits without straining your budget is key. Health Sphere’s Core360 program leverages Section 125 allowable expenses, paired with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP), to give both employees and employers real, tangible benefits. By enhancing employee satisfaction and providing significant tax savings, Core360 delivers a unique solution that works for your business, all while maintaining full compliance.
Want to boost employee benefits and maximize Section 125 savings? Book your consultation today and start saving.
