BenefitsAssist now offers Lifestyle Spending Accounts
Changes in the world over the last few years have brought more uncertainty to the workplace. As a result, employers want to attract and retain talent, while employees search for employment opportunities that can provide more than just a salary and traditional benefits. Lifestyle Spending Accounts (LSAs) bridge this gap.
What is a Lifestyle Spending Account?
A Lifestyle Spending Account is a unique benefit that gives employees the freedom and flexibility to allocate funds to various aspects of their personal lives. Rather than prescribe how employees should spend their benefits, an LSA allows them to decide what matters most and invest in activities that enhance their well-being.
Employees enrolled in an LSA are allocated funds in their Lifestyle Spending Account. They can use these funds towards a variety of expenses related to their personal well-being and lifestyle. Eligible categories for spending include gym memberships, healthy groceries, family caregiving services, and mental health services.
What are the benefits of an LSA?
Employees can use LSAs for expenses that are not covered by traditional benefits. LSAs can also provide tax advantages for employers. Depending on specific tax regulations, contributions made to LSAs may be tax-deductible for the company.
LSAs boost employee productivity, wellness, and happiness. When employees feel valued and supported, they are more likely to stay with the company for the long term, reducing turnover costs associated with recruitment and training. Engaged employees tend to be more committed to their work, resulting in higher productivity and better customer satisfaction.
LSAs are fully adaptable. Employers fund participant accounts to predefined amounts per employee, set limits and restrict spending to specific types of products and services.
Employers only pay for what employees spend from their LSA. Unused funds are returned to the employer. LSAs may help employers save money by reducing healthcare costs since employees who use an LSA to prioritize their health may be less likely to have medical issues. This may lead to decreased healthcare claims and reduced insurance premiums.
Although LSAs are fairly new to the benefits world, an increasing number of companies are offering LSAs in benefits packages. Employees are placing more importance on company benefits when looking for employment. A Lifestyle Spending Account can help grow the company, save money, and attract top talent. If your company is interested in providing Lifestyle Spending Accounts, please contact us.