Lifestyle Spending Accounts Explained
A benefit for every lifestyle
Used as part of an overall employee wellness package, a lifestyle spending account (or LSA) is an employer-funded, fully customizable, post-tax benefit designed to promote healthy habits and overall well-being. You choose the amount (typically $500–$1,000 per year) and which expenses are eligible, and your employees can choose to use the money as they see fit. Common categories include:
- Physical wellness: Exercise equipment, gym memberships, fitness trackers, race and league entry fees, wellness apps, etc.
- Financial wellness: Student loan reimbursement, financial advisor services, pet insurance premiums, home purchase expenses, etc.
- Emotional wellness: Non-medical counseling, personal and professional development opportunities, pet care, camping and fishing expenses, etc.
If you’re interested in learning more or getting started, simply contact Omnify today.
Stay competitive in a tight job market
Today’s job-hunters have plenty of options, and you want to make sure you’re keeping your best people, too. Adding an LSA to your benefits package can help you attract and retain the talent you want.
Recoup unused funds
LSAs are low risk and high reward, because if an employee doesn’t spend the dollars, any unused funds go back to you, the employer, at the end of the year or if an employee leaves the company.
Give it and forget it
There’s no need for you to monitor or approve how the funds are used — all you have to do is designate eligible expenses, and Omnify will do the rest. After all, that’s what we’re here for.
How Do LSAs Work?
Getting started is easy
When you’re ready to add lifestyle spending accounts to your benefits package, the steps to getting started are simple:
- Determine your budget. Decide how much you would like to spend per employee.
- Identify spending categories. Create your own unique program parameters — you can restrict the use of funds to certain types of purchases or leave it wide open. The choice is yours!
- Communicate the benefit. Use Omnify’s educational materials to promote and educate the benefit.
You can take the guesswork out of offering a competitive benefits package by letting the experts at Omnify handle the setup and administration of your LSA (and any other account we’re happy to offer!). Contact us to get started today.
