Payroll processor Paychex has introduced a debit card that offers a way for a business client's employees to access their flexible spending account funds.
Employees enrolled in a Paychex FSA plan can use the Paychex FSA Debit Card to pay for items such as prescriptions, co-pays, dependent care and other FSA-eligible expenses. The expenses are automatically deducted from a participant's FSA. In most cases the card will eliminate the need for an employee to pay the expenses up front, submit a claim, and then wait for reimbursement.
The Paychex FSA Debit Card complies with recent IRS regulations that stipulate that cards can be used at grocery and discount stores, wholesale clubs, and mail- and Web-based vendors that have inventory information approval systems installed. The IIAS technology immediately tells an employee if the expense is eligible. With the swipe of a card at locations with an IIAS, the participant knows if the item or service is a reimbursable expense. If it is, the participant can pay for it immediately out of their debit card account.
The Paychex FSA Debit Card can be used for most FSA-eligible items and services at any location that accepts MasterCard and provides a medical or dependent-care service, or sells FSA-eligible items.
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