BASE^® Blog

The Lifestyle Spending Account (LSA) is one of the most flexible fringe benefits an employer can provide their employees.  It has a positive impact on both employer and employees, helping to reduce stress, increase morale and productivity, and encourage healthy behaviors.  And with only 33% of employees feeling that their well-being was thriving, according to Gallup, the LSA looks to be a benefit that can help fill the gap.

The BASE® LSA is a customized post-tax spending account available to employers who want to promote healthy habits and the overall well-being of their employees.  Rather than invest in another well-being initiative that employees may or may not use, employers can help subsidize a variety of services, products, or experiences to fit employees’ very different lifestyles. As employers are in the process of reviewing benefits for the 2024 plan year, the LSA can be a great addition and even address employees’ desire for higher compensation without permanently increasing base pay.

The LSA is completely customizable by the employer.  The employer can decide how much they want to provide their employees on a post-tax basis, how they want to reimburse their employees, and what eligible expenses will be reimbursed to provide employees with the flexibility to pay for expenses that meet their lifestyle and interests.

Some things for an employer to consider as they look at adding a Lifestyle Spending Account to their 2024 benefit options:

• What benefits do they currently offer that could be considered part of an overall lifestyle program (ex. adoption assistance) and what could add to this?
• What do their employees and potential employees care about?
• What types of behavior do they want to influence in their employees?

With so many generations in the workforce in 2024, there are a lot of employees with varying needs, especially when it comes to health and wellness.  Employers can utilize the LSA to meet the needs of everyone, no matter their stage of life, age, or circumstances, and is designed to improve the overall well-being or lifestyle.

Explore the option of adding the Lifestyle Spending Account for the 2024 plan year by contacting BASE® at 1.888.386.9680 or visiting www.BASEonline.com.

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