Let the IRS give your
employees a raise.
Most business owners have never heard of Section 125 — a federal tax code that puts $72 more per paycheck in your employees' pockets and saves you $681+ per employee, per year. Zero cost to you or your employees. Your team gets a raise. You save thousands. The government covers both.
See What You'd Save
5 quick questions · instant estimate · no email required
Minimum 10 W-2 employees · $25K+ salary · ACA-compliant health coverage required
Verified by CBIZ & HitesmanLaw · Zero cost · Zero obligation
Section 125 Plan for Drayage & Port Logistics Operators
Port-area drayage runs high-WC-rate (avg 10%) trucking operations where Section 125 delivers the largest combined FICA + WC savings on the entire calculator. Operations at the Port of Los Angeles, Long Beach, Oakland, Houston, Charleston, and Newark all qualify under the same model.
Black Tiger Transportation — a 66-W-2-employee Southern California medical transport and logistics operation — saves $140,000/year using exactly this structure. Their CEO is a CPA who personally reviewed every IRS code before signing.
On a 40-driver drayage fleet at a 10% WC rate, the WC savings alone (conservative half-rate model) are roughly $28,800/year, on top of $27,264/year in net FICA. That's over $56,000/year combined — at zero cost.
The math, your headcount
For Drayage & Port Logistics (avg WC rate ~10%), the calculator returns your exact net FICA savings + a Workers' Comp reduction estimate by classification. No email required.
→ Run the calculatorWhy drayage saves the most
Drayage carriers price WC on a high payroll-rate basis (often 8–14% depending on classification), and audits are aggressive because port terminals carry tighter loss-history scrutiny. A pre-tax payroll reduction translates almost dollar-for-dollar into the WC premium base reduction at the next audit.
Real-world results
- ✓Black Tiger Transportation: 66 employees, $140K/year combined FICA + WC.
- ✓Port of LA / Long Beach drayage operators are the single largest local concentration in our prospect list.
- ✓Implementation is identical to other trucking operators — 6–8 week setup, no carrier changes, no driver disruption.
What this looks like in practice.
“I conducted a thorough review of all pertinent IRS codes and compliance documentation. The findings were compelling, prompting a swift decision to enroll my company.”
Verified by the Best in the Country
Skepticism is the right response. We don't ask you to take our word for it — we bring institutional proof that convinced CPAs, CFOs, attorneys, and insurance brokers to enroll their own companies.
Darcy L. Hitesman, J.D.
35+ years as an Employee Benefits attorney specializing in IRC Section 125, ERISA, HIPAA, and the ACA. Her May 5, 2025 opinion letter concludes: “In this firm's opinion, the Program described satisfies applicable IRS requirements.”
She specifically reviewed the IRS Chief Counsel Advice memoranda on "double-dip" arrangements — the exact schemes the IRS has flagged — and concluded this program is built differently and compliantly.
CBIZ Advisors LLC
CBIZ independently reviewed the program against IRC §§ 125, 105, and 106, plus ERISA, ACA, and COBRA requirements. Their August 22, 2025 letter concludes: “If operated per its provisions, the Program appears to satisfy the requirements of ERISA, the ACA, and COBRA as well.”
This review was commissioned by Affinity Hospice's CEO before enrolling his nationwide organization — and the CFO (himself a CPA) shared the letter publicly in his testimonial.
Direct From the U.S. Government
Section 125 has been in the Internal Revenue Code since 1978. Congress wrote it there specifically to encourage employers to fund preventive healthcare for American workers. This is not a loophole — it is the precise, intended use of a 47-year-old federal law, grounded in IRS Revenue Ruling 69-154, the specific published ruling supporting the benefit payment structure.
→ Verify on IRS.gov — Section 125 Cafeteria Plans ↗Questions specific to your industry
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Free. No Pitch. Just Math.
Verified: CBIZ Advisors LLC (Aug 2025) · HitesmanLaw P.A. (May 2025)
$500K legal protection per enrolled employer · IRS Section 125 · Federal law since 1978