Flexible spending accounts (FSAs) are tax-advantaged accounts offered by your employer that allows you use pre-tax dollars to pay for eligible health expenses. Funds in your FSA have to be used by the end of the year unless your employer offers a grace period of up to 2.5 months into the following year or carryover limits. Binkey can help consumers better manage and use FSA funds. Download the Binkey's My FSA | HSA Assistant Chrome Extension.
Binkey's API can be embedded into a business website and used to accept FSA cards. For more information on how your business can accept FSAs, contact us today.
HSA is a type of savings account that sets funds aside for health-related expenses. HSAs are similar to FSA, but are limited to people with high deductible health plans. You can fund your HSA account by with-holding a portion of your pre-tax paycheck, or by making a direct tax-deductible contribution at any time. HSA funds do not expire and roll over year to year if the funds are not spent. Furthermore, your HSA can be placed in an investment fund and grow tax-free over time. Binkey can help individuals and families better manage and use HSA funds. Download the Binkey's My FSA | HSA Assistant Chrome Extension.
Binkey's API can be embedded into a business website and used to accept HSAs at checkout. For more information on Binkey for your business, contact us today.
Health reimbursement accounts (HRAs) are tax-advantaged employer-funded health benefits that can be used to cover specific medical expenses. Unlike FSA and HSA, HRAs can be used to cover health insurance premiums.
According to the Internal Revenue Service (IRS), there are two qualifying options to enable accepting FSA card payments:
1) Merchants and service providers with a healthcare-specific merchant category code (MCC) such as hospitals, dentists, physician offices, etc.
2) Merchants and service providers without a healthcare-specific merchant category code must utilize an Inventory Information Approval System (IIAS)
The 90% Rule exempts drug stores and pharmacies with at least 90% of sales for the most recently ended tax year from “eligible medical expenses” as defined in Section 213(d) of the Internal Revenue Code (including eligible non-prescription items) from the IIAS requirement and allows for the acceptance of FSA and HRA payments
The IIAS Certification process for non-healthcare merchants entails technical demonstration of processing ability, IIAS Self Assessment Questionnaire completion, use of nationally branded eligible products list, and transaction archival system.Binkey can help merchants prepare materials needed for certification.
There are five categories of information that must be present on the itemized receipt:
1. Patient/Consumer name - The name of the person who received the service
2. Merchant/Provider name - The merchant/provider who sold the item / provided the service
3. Date of Service/Purchase - The date the item was purchased or service was provided
4. Type of Service / Product - A description of the item purchased/service provided
5. Cost - The amount paid for the product/service.
Binkey's Receipt API ensures that merchants deliver IRS-compliant receipts to ensure a seamless reimbursement process for consumers
The Internal Revenue Code states that funds in tax-advantaged FSAs must be used for authorized purposes only. Therefore, if these tax-advantaged accounts are used to purchase a product that is returned or the order cancelled, the paid amount must be credited back to the FSA account. The funds could be made available for other authorized purchases. Failing to return refunded FSA dollars to one's FSA account or failing to exchange for other authorized products/services is a violation of IRS regulations. Non-compliance with the authorized use stipulations for FSAs could result in disciplinary from one's employer and/or having to report funds as taxable income to the IRS. Binkey's payment solution ensures that merchants are aware of FSA/HRA purchases and can help consumers comply with IRS regulations when issued refunds.
Yes. Binkey offers consumers the ability to store IIAS-compliant receipts in the Binkey Cloud for convenient retrieval when filing claims for reimbursement.