Improve Employee Wellness with Lifestyle Benefits

Lifestyle spending accounts (LSAs) provide a flexible and valuable solution to enhance your employee benefits program. LSA funds are a fully customizable, post-tax benefit to give employers full control to create a plan that promotes healthy habits and overall well-being. Different from health savings accounts and flexible spending accounts, LSAs are funded by employers with money that is taxed as income to employees when they spend it. The funds in HSAs, HRAs and FSAs are not taxable when spent on qualified expenses.

Empower employees to prioritize health and happiness with an innovative wellness program. Tailor benefits packages to suit your employees' unique needs, whether it's funding a gym membership, seeking financial wellness support, or support for professional development. Employees can have the peace of mind that comes with knowing employers have the resources to support their well-being, leading to increased employee engagement and retention.

A lifestyle spending account (LSA) is a taxable benefit employers can offer to support employee wellness initiatives beyond healthcare. LSAs cover a wide range of non-medical expenses, such as stipends for fitness memberships, professional development or even home office equipment. Unlike health savings accounts (HSAs), they do not require pairing with a high-deductible health plan and are fully customizable to meet the needs of the workforce.

By contrast, HSAs are pre-tax accounts intended for qualified medical expenses. Contributions to an HSA are tax-deductible, and unused funds roll over each year, making them a long-term tool for managing healthcare costs. LSAs focus on lifestyle benefits and flexibility, while HSAs are tightly regulated and health focused.

Providing childcare benefits helps companies address a significant challenge that working parents face, leading to measurable advantages for employees and employers. Offering unique benefits like this highlights the company’s focus on family values while contributing to:

Increased employee retention: Offering childcare benefits reduces turnover by addressing a critical need for working parents, making them more likely to stay with the company.

Enhanced recruitment: Childcare benefits make companies more attractive to prospective employees, particularly in competitive job markets.

Improved productivity: Employees with access to childcare benefits experience fewer disruptions and can focus better at work, resulting in higher overall productivity.

Reduced absenteeism: Reliable childcare support decreases the frequency of absences caused by last-minute family obligations.

Stronger employee loyalty: Providing childcare benefits fosters a sense of trust and appreciation, encouraging employees to remain committed to the organization.

By retaining just 1% of eligible employees, companies can fully offset the cost of providing these benefits.