What Are the Top Financial Benefits of a Section 125 Plan for Your Small Business?

Running a small business means every dollar counts. Whether you’re trying to attract top talent, keep your team healthy, or simply reduce overhead, offering smarter benefits can make a huge difference. But what if you could do all that—without spending more or changing your existing benefits?

That’s exactly what Health Sphere’s Core360 Plan does. It’s not a traditional Section 125 plan—it leverages a Section 125 plan for small business alongside a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP) to create one of the most compliant, automated, and cost-free employee benefits programs available today.

Let’s break down how Core360 works and why thousands of small businesses are making the switch—starting with the top financial benefits for employers and employees alike.

Understanding the Core360 Plan: More Than a Section 125 Plan

Before diving into the savings, it’s important to understand how Core360 works.

Unlike traditional Section 125 offerings, Core360 includes three integrated components:

Section 125 pre-tax benefits structure
A fully managed Preventative Care Management Plan (PCMP)
A compliant Self Insured Medical Reimbursement Plan (SIMRP)

This trio allows employers to offer meaningful, preventative health benefits at zero out-of-pocket cost, while generating massive annual tax savings.

Core360 leverages Section 125 taxes savings to fund better health care outcomes, wellness tools, and expanded insurance coverage—without reducing employee take-home pay.

The Top Financial Benefits of the Core360 Plan for Small Businesses

Employer Savings: ~$600 Per W2, Every Year
For every full-time employee enrolled, small businesses using Core360 can expect to save around $600 per year in payroll taxes.

That’s $60,000/year for just 100 employees
These are real, bottom-line savings—without touching your current group health plan

And here’s the kicker: there’s no cost to implement Core360. It’s a rare case where you actually save money by doing the right thing.

Fast, Automated Rollout in 30–45 Days

Core360 is designed with small business agility in mind. You don’t need a large HR team or fancy systems.

Fully automated onboarding
No disruption to existing benefits
Live in under 6 weeks

This kind of seamless implementation is critical for smaller teams that need results fast.

Reduced Healthcare Claims Over Time

By integrating a Preventative Care Management Plan, Core360 encourages better employee health. Over just three years, companies see a reduction in healthcare claims worth up to $1,400 per employee.

That’s because Core360 provides employees with:

24/7 access to telehealth
Mental health resources
Preventative wellness tools powered by the Mayo Clinic

Better health outcomes = fewer expensive claims.

Boost Retention and Productivity

Let’s be honest: retention matters. Losing an employee costs a small business anywhere from 30–150% of their annual salary in lost productivity and retraining.

Core360 helps you keep great people by giving them benefits they’ll actually use and appreciate, including:

Zero copay telemedicine
Support for mental health, addiction, and family care
Expanded life, disability, and critical illness coverage

These aren’t throwaway perks—they’re real, family-first benefits your team will talk about.

What About Employees? Even Bigger Wins.

Small businesses thrive when their teams are taken care of. With Core360, employees see a 3–4% net increase in their paychecks, often around $100/month.

Here’s how:

Instead of increasing costs or deducting more from paychecks, Core360 uses pre-tax dollars via Section 125 to fund new benefits
Employees gain access to services that would otherwise come with out-of-pocket costs

Key Employee Benefits in Core360:

$0 copay for 24/7 Telehealth (doctors, nurses, coaches)
Mayo Clinic-powered wellness tools and personalized health dashboards
Mental health, addiction, and emotional support services
Life, Disability, and Critical Illness Insurance
Spouse & dependent coverage

All with no change in take-home pay, and often an increase.

More than 40,000+ employees are already enrolled in Core360 across small and mid-sized businesses in the U.S.

Why Core360 is Different from Traditional Section 125 Plans?

Let’s be clear: this isn’t just a Section 125 plan.

It includes Section 125—but combines it with powerful, preventative healthcare and tax-compliant reimbursements through PCMP and SIMRP. This gives small businesses the chance to:

Offer better benefits than much larger companies
Save on payroll taxes, healthcare costs, and employee churn
Stay fully compliant without legal risk or administrative burden

Unlike traditional cafeteria plans, Core360 is fully managed, automated, and requires no additional HR effort.

Core360 Aligns with Your Company’s Mission

Health Sphere exists to help small businesses offer smarter benefits that are simple, compliant, and meaningful, without extra cost. Our goal is to reach over 250,000 employees by empowering companies to stop wasting tax dollars and start investing in wellness that actually works.

We believe:

Strong teams start with care
Loyalty is built through benefits
You can build a great workplace without spending more

The Tax Benefits of a Section 125 Plan for Small Business — Amplified

While the traditional section 125 plan for small business already helps reduce employer payroll taxes and employee taxable income, Core360 amplifies these savings through integration with:

Preventative care services (PCMP)
Self Insured Medical reimbursement plans (SIMRP)
$0 copay telehealth and enhanced coverage

All wrapped in a compliant, cost-free package that works with your existing payroll system and benefits offerings.

Employees save on Section 125 taxes
Employers reduce FICA, FUTA, SUTA, and workers comp costs

No headaches. Just savings.

Real Results, Real Impact

Here’s what small businesses say about Core360:

“We saved over $80,000 in our first year—and didn’t change a single benefit. Our employees were thrilled with the new tools and coverage.”
– HR Director, 120-employee logistics company

“Core360 gave us everything we wanted—compliance, automation, and no upfront costs. It’s a no-brainer for any small business owner.”
– CEO, regional retail brand

Final Thoughts: Better Benefits Without the Price Tag

In a world where small businesses are often left behind by traditional benefit plans, Health Sphere’s Core360 flips the script. By leveraging Section 125, combining it with powerful health and wellness plans, and rolling it out without cost or complexity, Core360 is redefining what’s possible for small business benefits.

With Core360, you get: