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Congress Passes Economic Stimulus Package
Act Provides Incentives to Invest in Upgraded Store Technology
On Tuesday, February 12, President Bush signed into law the “Economic Stimulus Act of 2008” to provide $152 billion in tax rebates and business investment incentives to stabilize the economy. Retailers can benefit from the $45 billion in investment incentives that are included for any equipment bought after December 31, 2007 and placed into service during 2008. Grocers can take advantage of these incentives by upgrading their point-of-sale (POS) equipment and systems so they are prepared for the switch from the Universal Product Code (U.P.C.) to the GS1 DataBar in 2010.
In response to the demands of manufacturers and retailers for a more useful barcode, GS1 US has recently finalized the standards for a new barcode format, the GS1 DataBar. Coupons using the GS1 DataBar, formerly known as Reduced Space Symbology (RSS), will have the ability to handle more complex offers, combat coupon fraud and provide full auditability. The GS1 DataBar can also be used on produce and other hard-to-mark products.
Starting January 2008, manufacturers will begin producing coupons with the current UPC-A barcode as well as the new GS1 DataBar. Also at this time, use of the GS1-128 Coupon Extended Code will be discontinued. This “interim” period will continue until January 2010, when the UPC-A barcode will be removed and only the GS1 DataBar will be used. After this date manufacturers will also have the option to use the GS1 DataBar on their products that can benefit from this new barcode. Make sure your stores are ready; contact your scanner and POS solution providers to make sure your equipment is ready to handle the GS1 DataBar.
For more information on how retailers can benefit from the Economic Stimulus Package (.pdf 448 kb).
For questions regarding the GS1 DataBar click here.
For further questions or information contact Adam Dreyer or call 703-516-0700.
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Auto-Substantiation at the Point of Sale
The proliferation of flexible spending accounts (FSAs), and the debit cards tied to these accounts, is making it easier for consumers to allocate health care costs and purchase the medication they need. According to a recent study from Celent, currently about 20% of FSA participants use the debit card, and usage will increase to over 85% of participants by 2010. However, as a result of IRS Notice 2006-69, consumers will expect that by using their debit cards the transaction will be automatically substantiated at the point of sale and they will no longer have to file a separate claim. If your store’s transaction system is not ready for this process, your customers may decide to make their health care purchases at a different store.
What is the difference between Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and Health Reimbursement Accounts (HRAs)? This comparison chart (.pdf 68 kb) will give you a general overview of each type of account.
A wide range of over-the-counter medications and other products can be purchased with money from FSA/HSA/HRA programs. This document (.pdf 134 kb) gives a brief overview of the different categories covered under the accounts with examples of eligible branded products.
Other helpful resources:
If you have any questions about the auto-substantiation process or the different spending accounts, please contact Adam Dreyer at (703) 516-0700.
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