June 9, 2025

Offering a salary and basic healthcare is no longer the only topic of discussion for contemporary firms looking to stay competitive. The modern worker demands perks that are meaningful and adaptable without sacrificing compensation. The section 125 flexible plan is one solution that sticks out in this environment.

The modern worker demands perks that are meaningful and adaptable without sacrificing compensation. The 125 plans employee benefits provide a way to balance flexibility and cost savings. With our Core360 platform, we at Health Sphere have reimagined how this benefit may operate. Employers can cut expenses while raising employee happiness and engagement by integrating Core360 with Section 125 benefits.

Let’s examine how this method changes conventional benefits for employees in more detail.

What Is a Section 125 Flexible Benefit Plan, and Why Does It Matter?

A section 125 flexible benefit plan, commonly referred to as a “cafeteria plan,” is a mechanism that allows employees to choose from various pre-tax benefit options. Indeed the benefit choices under section 125 flexible plan reduce employee taxable income while enabling employers to obtain immediate payroll tax relief.

These plans are authorized under Section 125 of the Internal Revenue Code and typically include:

Medical, dental, and vision coverage
Dependent care assistance
Group-term life insurance
Health savings or reimbursement accounts

What makes these plans valuable is their dual benefit: employees take home more pay, while employers save on FICA and FUTA taxes. It’s a rare instance of a win-win scenario in HR strategy.

Meet Core360: A Comprehensive, No-Cost Benefits Solution

While Section 125 plans alone provide notable advantages, Health Sphere’s Core360 structure amplifies the impact. It integrates three critical layers into one seamless program:

Section 125 Cafeteria Plan

The foundation of Core360, this component offers pre-tax benefits selection, creating automatic payroll tax savings for both the employer and employee.

Preventative Care Management Plan (PCMP)

The preventive health services division of the medical service layer includes annual screenings along with telehealth appointments and lifestyle coaching. Onset detection through these services leads to decreased healthcare costs along with reduced staff absence throughout the extended timeframe.

Self-Insured Medical Reimbursement Plan (SIMRP)

Employers manage medical expenses not covered by health plans through SIMRP which employs self-funded tax-advantaged structures to reimburse their staff for eligible bills that include co-pays and deductibles in addition to prescription costs.

These three foundational elements transform Core360 from its role as a basic tax strategy into an enhanced employee benefits platform that provides comprehensive services of high impact.

What’s in It for Employers?

Forward-thinking businesses are increasingly using Core360 not only as a benefits tool but as a financial and cultural asset. By integrating 125 plans employee benefits into your HR strategy, you can offer more without increasing your benefits spend. Here’s why:

Zero Cost to Implement or Maintain: Core360 is entirely self-funded through the tax savings it generates. That means no out-of-pocket spending for employers—ever.
Major Payroll Tax Reductions: Businesses generate between $600 and $800 worth of savings for each member of their employee base annually. On average, the annual savings reach between $60,000 to $80,000 per year with a staff of 100 people.
Streamlined Payroll Integration: Our system works smoothly with over 50 payroll providers. From initial setup to ongoing administration, we handle it all, so your HR and finance teams can stay focused on their core work.
Better Retention and Morale: Employees see greater value in their compensation packages, resulting in reduced turnover and higher morale. Some employers report retention improvements of up to 60%.
Compliant by Design: Every component of Core360 aligns with IRS, ACA, and Department of Labor requirements. Documentation, reporting, and auditing support are included to ensure total peace of mind.
Quick, Painless Implementation: Core360 can be rolled out in 4-5 weeks, offering an immediate ROI with virtually no operational disruption.

Benefits for Employees: It’s Not Just About Savings

For employees, Core360 represents more than just extra take-home pay. It’s about experiencing healthcare differently—more affordably, more accessibly, and more holistically.

More Pay, Same Work

Participants typically see a 3–4% increase in net income, often without any changes to their gross salary. That translates to an extra $1,000–$1,200 annually—a meaningful bump for everyday expenses.

On-Demand Telehealth Access

Virtual consultations with medical professionals are available 24/7, helping employees manage their health without long waits or missed workdays.

Inclusive Family Benefits

Spouses and dependents are eligible for many of the same services, making Core360 especially appealing to families managing rising healthcare costs.

Vision, Dental & Rx Discounts

From prescription savings to discounted dental and vision services, employees get more value from their benefits without paying more.

Mental Health Resources

The availability of both therapists and well-being programs enables workers to maintain their mental strength which strengthens workforce capability.

The Results Speak for Themselves

More than 23,000 employees are currently enrolled in Core360, and employers across various sectors are realizing its value:

Reduced attrition: Businesses have reported turnover drops of 40–60%.
Improved recruitment: Job seekers value the holistic benefits structure.
Lower absenteeism: Proactive health access keeps employees healthier and more present.
Greater employee satisfaction: Net pay increases and access to preventive care drive loyalty.

This isn’t theory—it’s real impact, delivered at scale.

How Core360 Outperforms Traditional Plans

Feature	Typical Benefits Package	Core360 Program
Employer Cost	Often High	$0 Out-of-Pocket
Payroll Tax Savings	Limited or None	Up to $800/Employee/Year
Benefit Access	Basic	Enhanced with Preventive Care
Compliance Risk	Moderate	Fully Managed & Compliant
Implementation Time	Weeks to Months	30–45 Days
Net Employee Income	Static	3–4% Increase
Mental Health & Telehealth	Extra Cost	Included at No Charge

Final Thoughts: Why Now Is the Time to Act

As the cost of healthcare continues to climb and employee expectations evolve, the time to rethink your benefits strategy is now. A section 125 flexible benefit plan, when executed as part of a broader framework like Core360, becomes much more than a tax break—it becomes a talent retention tool, a financial strategy, and a compliance safeguard rolled into one.

With no financial risk, easy implementation, and quantifiable rewards for both employees and employers, Core360 is redefining what modern benefits should look like.