How the IRC Section 125 Flexible Benefit Plan Helps You Cut Taxes Fast
Every employer wants to provide meaningful benefits without increasing costs or dealing with complex compliance issues. But too often, traditional benefits either cut into your bottom line or fail to offer real value to employees. That’s where the IRC Section 125 flexible benefit plan, when integrated into a fully managed solution like Core360 from Health Spher, can change the game.
With Core360, companies can improve employee well-being and significantly reduce tax waste, with zero out-of-pocket cost and no disruption to current benefits. Even better, many employees actually see a 3–4% net increase in take-home pay, making it a true win-win.
Let’s look at how the Core360 plan uses the IRC Section 125 plan and why this modern method is one of the fastest and safest ways to lower taxes and boost happiness on the team.
What Is the IRC Section 125 Flexible Benefit Plan?
The IRC Section 125 plan, which is also called a “cafeteria plan,” lets workers pay for some perks before they are taxed. That means companies will pay less in payroll taxes and workers will get more money that isn’t taxed. These plans usually cover things like health plan payments or care for dependents, but when they’re just these plans, they’re not fully utilized and utilized.
Core360 takes this concept further by integrating Section 125 into a broader, smarter system—one that’s fully managed, compliant, and designed to work automatically.
Core360: A Smarter, Faster Way to Cut Taxes
Core360 is not just another IRC Section 125 flexible benefit plan. It’s a unique program that combines:
- Section 125 tax benefits
- A Preventative Care Management Plan (PCMP)
- A Self-Insured Medical Reimbursement Plan (SIMRP)
By putting these three parts together, Core360 makes one of the most comprehensive and IRS-compliant options available. There is no cost up front, there is no effect on employees’ net pay, and the rollout is quick (usually within 30–45 days).
Employer Benefits: Bigger Tax Savings, Zero Hassle
With Core360, employers typically save around $600 per W2 employee per year—which translates to $60,000 in savings for every 100 employees. And because the program is automated and fully managed, there’s no administrative burden or need to alter existing health plans.
Key employer advantages:
- $600/year in tax savings per employee
- No out-of-pocket cost to implement
- Automated setup in 30–45 days
- Lower healthcare claims over time (~$1,400 savings over 3 years)
- Improved retention, morale, and performance
- Immediate bottom-line impact
Simply put, Core360 helps you keep more of what you earn, without making sacrifices or taking on extra work.
Employee Benefits: More Coverage, Higher Pay
For employees, Core360 is just as valuable. It’s designed to enhance—not replace—what they already have, offering family-wide benefits that many traditional plans overlook.
Because Core360 leverages the IRC Section 125 plan along with a self insured medical reimbursement plan, employees can access a wide range of benefits without reducing their take-home pay. In fact, most employees actually see an increase of around $100/month in net pay.
Employee highlights include:
- 3–4% increase in net take-home pay (~$1,200/year)
- $0 copay 24/7 telehealth for medical, mental health, and wellness
- Access to Mayo Clinic wellness tools and personal health dashboard
- Mental health and counseling support
- Universal Life, Critical Illness, and Disability coverage
- Coverage enhancements for spouses and dependents
And importantly, Core360 doesn’t interfere with their current benefits. It works quietly in the background to strengthen coverage and improve financial well-being.
Why Core360 Is Different (and Better)
Many companies already offer some form of an IRC Section 125 flexible benefit plan, but very few take full advantage of what’s possible when it’s combined with PCMP and SIMRP.
Core360 is different because:
- It’s fully managed and requires no ongoing admin work
- It’s built around preventative health, not just cost-shifting
- It integrates a self-insured medical reimbursement plan to maximize non-taxable benefits
- It provides clear IRS compliance, giving peace of mind
- It’s already trusted by more than 40,000+ employees nationwide
Health Sphere’s mission is to reach 250,000 lives, and Core360 is the vehicle to make that happen.
Compliance Without Complexity
Compliance is one of the biggest concerns when it comes to tax-advantaged benefit plans—and rightly so. However, Core360 is built from the ground up to be IRS-compliant, transparent, and fully auditable. Every component—Section 125, PCMP, and SIMRP—is vetted and structured to meet federal guidelines.
You don’t have to worry about making mistakes or facing audits. Health Sphere handles everything for you, from onboarding to administration, making it easy to do the right thing for your business and your team.
Real Results for Real Companies
Employers across the country are already seeing the benefits of switching to Core360:
- A mid-sized logistics company saved over $120,000/year in payroll taxes
- A hospitality group improved retention by 20% after rolling out the plan
- Employees reported greater satisfaction with benefits—without a single change to their core health plan
These aren’t hypothetical scenarios—they’re the real-world results of a smarter, more flexible approach to employee benefits.
The Bottom Line
The IRC Section 125 flexible benefit plan is a powerful tool—but it’s only the beginning. When you combine it with a Preventative Care Management Plan and a Self-Insured Medical Reimbursement Plan, you get something far more valuable: a fully compliant, zero-cost solution that works for everyone.
Core360 by Health Sphere makes that solution possible.
- No added cost
- No disruption
- No downside
Just real tax savings, better health benefits, and a smarter path forward for your team.
Ready to Cut Taxes and Boost Benefits?
Talk with an expert today and see how Core360 can cut your tax burden, boost employee well-being, and roll out in under 30 days, with no upfront cost or disruption to your existing benefits.
Book your free 10-minute consultation now.
