As a business owner or partner, you work hard to ensure your staff is satisfied with the work they do, their compensation, and the health benefits you provide. You may be wondering, "what else can I do to attract and retain top talent to my organization?". Lifestyle spending accounts, also known as wellness spending accounts, can be an invaluable tool to do just so.
Frequently Asked Questions
What are lifestyle spending accounts?
Like health spending accounts, LSA's are accounts that you, the employer, contribute funds. LSA's allow your employees to spend the funds on expenses that otherwise are not covered on a regular health spending account.
What are the benefits of a lifestyle spending account?
Let's face it – Self-care is an essential part of everyone's life, and you must promote healthy lifestyle habits for your employees. LSA's can help you promote a healthy corporate culture by supporting your employees and their wellness needs. LSA's are often offered in conjunction with health spending accounts as these programs can significantly enhance any employee benefit program.
What can be expensed on a lifestyle spending account?
There are typically a few areas of support for lifestyle/wellness spending accounts to be incorporated into new or existing programs. Here are just a few eligible expenses that can be reimbursed under this type of program.
- Smoking cessation programs and products
- Stress management programs
- Weight management program fees and nutritional counselling
Fitness and Sports Activities
- Fitness club membership
- Sport league memberships
- Community league
- Personal trainer
- Dance classes
Fitness and Sports Equipment
- Treadmill, elliptical, weights
- Athletic footwear
- Hockey sticks and skates
- Home care
- Elder assistance
- Transit passes
- Monthly parking fees
Professional Development and Related Travel & Computer Products
- Tuition, books, study manuals
- Course, seminars, conferences, classes
- Professional and voluntary association and licensing fees
- Course travel costs
- Computers, hardware, repairs, maintenance, and upgrades
- Business-related software, internet services
Are lifestyle spending accounts taxable?
Unlike health spending accounts, LSA's are a taxable benefit that will generate a T4A slip which will have to be included in your employee's annual tax filing.Let's solve this puzzle together.
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How do I add lifestyle spending accounts to my employee benefits?
If you're interested in adding LSA's to your employee benefits program, a lifestyle spending account vendor can help you through it. LSA vendors have advisors specializing in employee benefits and are licensed to offer and access insurance products. These advisors can help you and your business integrate a wellness program into your new or existing employee benefits program.
Let's upgrade your lifestyle and wellness spending
Get in touch today to see how we can help you plan for better benefits for your entire team.