You have six more months until you have to stop issuing reimbursements for health FSA and HRA debit cards at certain retailers. Previously, IRS said that as of Dec. 31, 2008 the cards could no longer be used at stores with “Drug Store and Pharmacy” merchant category codes unless:

1. the store participates in the inventory information approval system, or
2. on a store-by-store basis, 90% of the store’s gross receipts for the prior taxable year were items which qualify as expenses for medical care (including nonprescription medications).

The deadline has been extended by six months to June 30, 2009.

You can get all of the details from IRS Notice 2009-104.

Tags: A/P, Benefits, Deadlines, Fringe benefits, IRS regs, Payroll