Lifestyle Spending Account eligible expenses

Employers are constantly looking for innovative ways to enhance the benefits they offer to their employees. One such flexible benefit that has gained popularity is the Lifestyle Spending Account (LSA).

LSAs offer diverse benefits, allowing employees to customize the benefits they want from their employers.

This article delves into what constitutes Lifestyle Spending Account eligible expenses, the benefits of Forma’s Lifestyle Spending Account, and weighs the pros and cons of LSAs.

Exploring Lifestyle Spending Account (LSA) eligible expenses

A Lifestyle Spending Account (LSA) is a versatile benefits solution that empowers employees to allocate funds towards expenses that truly matter to them, enhancing their quality of life both inside and outside the workplace. Unlike traditional benefits packages, an LSA by Forma offers a broad spectrum of eligible expenses, allowing for personalization and flexibility.

What can be covered under an LSA?

1. Lifestyle enhancements: From gym memberships to hobbies and work-from-home expenses, LSAs can cover expenses that contribute to an employee’s personal interests and recreational activities.
2. Wellness: This includes physical health expenses, such as gym subscriptions and exercise classes, and mental health support through counseling and other well-being services.
3. Work-from-home needs: With the rise of remote work, LSAs can cover home office necessities, including furniture, hardware, internet expenses, and other equipment.
4. Educational pursuits: Employees can invest in their personal and professional growth through courses, workshops, and books.
5. Family planning: Expenses related to starting a family, including adoption and fertility treatments, can be accommodated.
6. Caregiving support: LSAs can assist with the financial burden associated with caring for family members.
7. Rewards and recognition: Encouraging personal achievements through incentive programs is also a facet of LSAs.
8. Professional development: Team-building activities and educational expenses bolster team spirit and individual skills.

Compliance and making the most of your LSA

While the flexibility of LSAs is vast, ensuring compliance with eligible expenses is crucial. For a deeper understanding, explore our guidelines on LSA eligible expenses compliance.

Lifestyle Spending Account: customer stories

How do LSAs work in practice?  Here are some real user cases from employees of companies offering Forma’s Lifestyle Spending Accounts as part of their benefits package. 

"My wife and I are both working from home now, so we had to upgrade our internet service. Having that expense be something that I don’t have to take on is huge."

Mid-Market Sales at Affirm

"I have a three-and-a-half-year-old daughter who goes to preschool, and I submitted an invoice from the preschool. It was approved in a day or two."

Payroll Employee at DoubleVerify

"One of my absolute favorite Microsoft benefits is our annual Perks+ budget. Every January, it resets so that we can be reimbursed for up to $1500 for almost anything that supports our physical, mental, emotional, and/or financial well-being. I love it! In past years, I've spent my Perks+ on workout clothes, new sneakers, webcam upgrades, bat boxes, seeds and gardening supplies, massage, and even concert tickets." 

Global Benefits Leader at Dropbox

"One Dropboxer shared that while they had a stove, their oven hadn’t worked for years. They were so excited when Perks Allowance launched because they could afford to buy a new oven."

For more information about Lifestyle Spending Accounts and to discuss these eligible expenses,<span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a consultation</span> with one of our experts.

We’d be happy to help you find the perfect Lifestyle Spending Account solution for your unique needs.

Lifestyle Spending Account Pros and Cons

While LSAs offer unparalleled flexibility and personalization in benefits, weighing their advantages against potential drawbacks is important.

Pros:

• Flexibility and personalization: Caters to diverse needs and preferences of employees.
• Employee empowerment: Encourages employees to take control of their benefits and well-being.
• Competitive edge: Enhances an organization’s benefits package, aiding in talent attraction and retention.

Cons:

• Budget management: Requires mindful allocation of funds by both employers and employees.
• Compliance: Navigating eligible expenses and ensuring compliance can be complex. However, Formas experts can help you navigate how to be LSA-compliant. 

Get started with LSAs today

Forma’s Lifestyle Spending Account stands out as a modern solution to traditional benefits limitations, offering a wide range of eligible expenses that cater to the diverse needs and preferences of employees.

By incorporating LSAs into their benefits package, employers can significantly enhance employee satisfaction and loyalty while also providing a competitive edge in the talent market. 

For those considering implementing an LSA or looking to understand more about this flexible benefit,<span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button"> schedule a call</span> with one of our experts to learn more about the capabilities of an LSA.