A (new) employee benefit option has been gaining popularity in recent years because it shows that a company genuinely cares about the well-being of their employees. This benefit, known as a Lifestyle Spending Account (LSA), has seen an increase in popularity in recent years due to the flexibility it offers employers and employees.
The Lifestyle Spending Account 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, increasing morale and productivity, and encouraging healthy behaviors.
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. Employees can use this health benefit to pay for their eligible expenses that promote physical, financial, and emotional well-being.
Employers get to choose what expenses are covered and how much each employee gets to spend per plan year. Plus, employers can use LSAs to address employees’ desire for higher compensation without permanently increasing wages. 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 experience to fit employees’ very different lifestyles.
Employees can pay for things that promote their:
- Physical well-being: athletic and exercise equipment, gym memberships, fitness trackers, marathon entry fees, nutritional supplements, and more.
- Financial well-being: financial advisor, financial planning services, identity theft services, home purchase expense reimbursement, and more.
- Emotional and other well-being: non-medical counseling services, personal development classes, hunting and fishing licenses, retreats, camping supplies, and more.
Employers need to think differently about employee compensation, with salary and standard benefits packages no longer being enough to attract and retain top talent. With endless options, LSAs offer the flexibility and simplicity to expand benefit options to provide a health and wellness benefit on customized terms.