Paychex Inc. announced Monday that it has begun providing debit cards to its clients' employees to access funds in their flexible spending accounts.
The Rochester, N.Y., payroll company said its Paychex FSA Debit Card complies with tax regulations that allow its use at stores that have an "inventory information approval system," which can automatically determine if an expense is eligible.
Paychex said this approach, in most cases, eliminates the need for an employee to pay the expenses up front, submit a claim, and then wait for reimbursement.
Paychex said it is offering its new debit card at no charge to clients or enrolled participants.
FSA accounts enable employees to use pretax funds to pay for prescriptions, medical co-pays, dependent care, and other FSA-eligible expenses.
