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Boost your benefits with lifestyle spending accounts.
Lifestyle Spending Accounts allow you to create recurring rewards on a custom rhythm while giving employees more choice.
The Importance of Employee Wellbeing
Stress and anxiety cost the global workforce $1 trillion USD every year in lost productivity.
You can make a difference.
What are Lifestyle Spending Accounts?
Flexible stipend benefits that work.
With an LSA, employees accrue points on a regular schedule that they can use on purchases that suit their needs. This recurring allowance gives employees more freedom to choose how to use their funds, whilst still allowing admins to create custom programmes and curate approved expenses.
How to use a Lifestyle Spending Account
Spending your benefits
your way.
With an LSA, you decide how often and how much each employee is funded, and you decide which expenses are eligible for LSA funds.
Home Office Equipment
Fitness Equipment
Financial Services
Gym Memberships
Pet Care
Daycare Services
Why use a Lifestyle Spending Account?
Hassle-free for admins, life-changing for employees.
Set up eligibility, amounts, frequency, expiry and eligible expenses. Automation is simple and easy. Employees get their LSA funded on a recurring cadence you choose and can then spend those points in ways most meaningful to them.
Frequently asked questions
What Are Lifestyle Spending Accounts (LSAs)?
Lifestyle spending accounts (LSAs) are employer-funded accounts that help workforce members cover qualified health, wellness, or everyday expenses.
With Awardco, organizations can set up a flexible points system, allowing employees to choose how they enjoy their benefits. Employees receive regular points allotments, which they can use to purchase items. Meanwhile, admins have the flexibility to design customized programs and approve specific expenses.
What Is the Difference Between an LSA and HSA?
Lifestyle spending accounts (LSAs) are like a Swiss Army knife for your wallet. You can use them for all sorts of things that improve your well-being, from gym memberships to healthy snacks.
Health spending accounts (HSAs), on the other hand, are used specifically for healthcare costs. You can put money into the account without paying taxes, and you can use it to pay for doctor visits, prescriptions, and other medical expenses.
What Is the Intention of an LSA?
The intent is to empower employees to be healthier and happier. Employees can purchase products or services they might not otherwise be able to afford, like a gym membership. Overall, 61% of employees feel wellness is very important. Thus, offering personalized benefits like LSAs shows you’re willing to invest in your workforce’s well-being.
Who Is Eligible for LSA?
LSAs are open to all employees of companies that provide this benefit. The only requirement is that they meet the company’s eligibility criteria for receiving benefits.
How Are Lifestyle Spending Accounts Taxed?
LSA funds usually aren’t taxed until employees spend them.
Let’s say an individual saves up for a new bike or a gym membership—they won’t get taxed until they buy those things. In some cases, using LSAs for specific expenses can even save the employee and your company money on taxes.
But since LSAs can be pretty flexible, it’s a good idea to chat with a tax expert before you set one up. They can make sure you’re doing everything right and taking advantage of any tax breaks you might be eligible for.
What Are Eligible Expenses for an LSA?
Eligible expenses usually center on wellness and everyday essentials, such as gym memberships, fitness equipment, therapy sessions, daycare services, and pet care. But it’s really up to your company.
LSAs are popular because they offer flexible spending options. Unlike traditional benefits, LSAs aren’t restricted by IRS or government regulations. This gives employers more freedom to tailor their programs to meet employees’ diverse wellness needs.