1. Flexible Spending Accounts allow you to spend some of your money on a Pre-Tax basis. This means that you can pay for most day care and many medical expenses and not have to pay federal income taxes on those costs.
2. Flexible Spending Accounts are controlled by Internal Revenue Service (IRS) rules and regulations
3. The IRS has always required "substantiation" - or receipts - showing the date a product or service was purchased, what was purchased, and the amount paid.
4. The burden of maintaining adequate records has always rested on the taxpayer (employee)
5. While debit-card purchases provide access to your money more quickly and painlessly, receipts must still be retained to prove to the IRS that you are using your Flexible Spending account for legally authorized purchases.
6. The responsibility of Precision Administrators, Inc. is to ensure the purchases made through your Flexible Spending account meet these strict IRS requirements.
7. By law, failure to provide receipts - when requested - will result in freezing of your account (both debit-card and manual claims) until those purchases can be substantiated.
8. Note that there are a couple of options when dealing with pharmacy receipts.
9. Please contact our customer service department if you have any questions about the law, or what is required of Precision Administrators, Inc. in ensuring your Flexible Spending Plan remains compliant with these IRS rules and regulations.

The cost of health care in the United States has been increasing for the past several years.

Employers that previously paid for health care costs for employees are now forced to place that cost on their employees.

Offering a Section 125 to your employees relieves a part of the burden of health care costs today.

Allowing these benefits to be pre-taxed provides more flexibility for your employees to offer adequate health care coverage to their families.