Can I use a Lifestyle Spending Account (LSA) for meal delivery services?

Are you wondering if you can use your Lifestyle Spending Account (LSA) to cover the cost of meal delivery services?

With the growing popularity of these accounts, it's a question many employees are asking.

In this article, we'll explore what LSAs are and whether meal delivery services are an eligible expense.

What are Lifestyle Spending Accounts (LSAs)?

Lifestyle Spending Accounts, or LSAs, are employer-funded accounts designed to support the overall well-being of employees. These accounts recognize that wellness extends beyond just physical health, encompassing mental and financial health as well.

The key advantage of LSAs is their flexibility. Unlike traditional benefits that are often rigidly defined, LSAs allow employees to use the funds to cover a wide range of expenses related to their personal wellness. This could include anything from gym memberships to stress-reduction courses, depending on what the employer chooses to include.

By providing this flexibility, LSAs empower employees to take charge of their own well-being in a way that best suits their individual needs and preferences.

Examples of LSA-eligible expenses

So, what kinds of expenses can typically be covered by an LSA? While the specifics can vary from one employer to another, here are some common examples:

• Fitness-related expenses: This could include gym memberships, fitness classes (yoga, Pilates, spinning, etc.), personal training sessions, and fitness equipment purchases.
• Nutritional health: Many LSAs cover expenses related to healthy eating, such as consultations with nutritionists or dietitians.
• Mental health support: LSAs often cover therapy sessions, counseling, and stress-reduction programs like meditation classes.

Increasingly, employers are also including meal delivery services and grocery delivery as eligible expenses under their LSA programs. This is in recognition of the role that healthy eating plays in overall wellness, and the time-saving benefits these services can provide to busy employees.

So, if your employer offers an LSA, it's quite possible that you can indeed use it to cover the cost of your meal delivery service or healthy meal kit subscription. However, it's always best to check the specific guidelines of your company's LSA program to confirm what expenses are eligible.

Are meal delivery services eligible for LSA reimbursement?

Meal delivery services can typically be used with your Lifestyle Spending Account, provided your employer includes this category in their benefit plan. These accounts offer flexibility for you to cover food-related expenses that align with your wellness or convenience goals, though eligibility depends on your employer's specific LSA design. Here's a detailed breakdown:

Common types of meal delivery expenses covered

Many employers recognize the value of healthy eating and the time-saving benefits of meal delivery services. As a result, they often include various types of meal delivery expenses as eligible under their LSA programs:

• Meal Kits: Pre-portioned ingredients and recipes for home cooking, from services like HelloFresh, Blue Apron, or Sunbasket.
• Grocery Delivery: Having groceries delivered directly to your door using services like Instacart, Amazon Fresh, or Shipt.
• Restaurant Meals: Some plans may allow you to use your LSA for takeout or delivery from local restaurants.
• Special Diets: Meal services tailored to specific dietary needs or preferences, such as gluten-free, vegan, low-carb, or diabetic-friendly options.

To confirm if your specific meal delivery service is eligible, check your LSA's documentation or reach out to your HR department. They can provide personalized guidance on what expenses qualify under your company's plan.

Keep in mind that while many LSAs cover meal delivery, the specifics can vary. Your employer may have certain restrictions or requirements, such as a focus on health-oriented meal services or a cap on the amount you can spend in this category.

If your desired meal delivery service is eligible, you'll typically need to pay for the expense upfront and then submit a claim for reimbursement, providing any necessary receipts or documentation. Some LSA providers also offer a debit card that you can use to pay for eligible expenses directly.

Benefits of using LSAs for meal delivery services

Using your Lifestyle Spending Account for meal delivery services can provide several key benefits that support your overall health and well-being.

Promotes healthy eating habits

When you use your LSA for meal delivery, you have access to nutritious, well-balanced meals without the hassle of meal planning and grocery shopping. Many meal delivery services offer a variety of healthy options, such as low-calorie, low-carb, or plant-based meals. This can help you maintain a healthy diet and reach your wellness goals.

Saves time and reduces stress

Meal planning, grocery shopping, and cooking can be time-consuming and stressful, especially if you have a busy schedule. By using your LSA for meal delivery, you can save hours each week and reduce the stress associated with meal preparation. This extra time can be used for other activities that promote your well-being, such as exercise, hobbies, or spending time with family and friends.

Accommodates diverse dietary needs

If you have specific dietary restrictions or preferences, finding suitable meals can be challenging. Many meal delivery services cater to a wide range of dietary needs, such as gluten-free, vegan, or diabetic-friendly options. By using your LSA for these services, you can ensure that your unique dietary requirements are met without the added stress of searching for appropriate recipes and ingredients.

Enhances work-life balance

Using your LSA for meal delivery can help you achieve a better work-life balance. When you don't have to worry about meal planning and preparation, you can focus on your work responsibilities during the day and enjoy more quality time with loved ones in the evenings. This improved balance can lead to reduced stress, increased job satisfaction, and a greater sense of overall well-being.

How do employees claim meal delivery expenses through their LSA?

If your employer offers an LSA that covers meal delivery services, claiming these expenses is typically a straightforward process. Here's what you need to know:

Review employer guidelines

First, familiarize yourself with your company's LSA documentation. This will outline which specific expenses are eligible under your plan and any spending limits or requirements you need to be aware of. Look for information on meal delivery services, such as approved providers or any restrictions on the types of meals or plans that are covered.

Make purchases

Once you've confirmed that your desired meal delivery service is eligible, go ahead and place your order. This could involve signing up for a meal kit subscription, ordering prepared meals for delivery, or using a grocery delivery service to stock your fridge. Be sure to keep any receipts or order confirmations, as you'll likely need these when submitting your claim.

Submit for reimbursement

After you've received your meal delivery or groceries, it's time to submit your expense for reimbursement. Your employer will have a specific process for this, which may involve an online portal, mobile app, or submitting a paper claim form. You'll need to provide proof of your purchase, such as receipts or invoices, along with any other documentation required by your LSA administrator.

Receive funds

Once your claim has been reviewed and approved, you'll typically receive your reimbursement funds in your next paycheck. Some employers may offer direct deposit or other payment methods, so be sure to check your company's specific guidelines. Keep in mind that reimbursements from an LSA are typically considered taxable income, so you may see the appropriate taxes withheld from your payment.

By understanding your employer's LSA guidelines and following the proper claim submission process, you can easily take advantage of this valuable benefit to support your healthy eating goals and simplify your meal planning.

Tax implications of using LSAs for meal delivery

Most LSAs are funded with post-tax dollars, meaning reimbursements for meal delivery services are typically considered taxable income for employees. When you receive reimbursement for your meal delivery expenses, the amount will likely be subject to income tax withholding and reported on your W-2 form.

However, there are some exceptions to this general rule. If you have a medically necessary diet, such as a gluten-free or low-sodium meal plan prescribed by a doctor, your meal delivery expenses may qualify for tax-advantaged treatment. In these cases, you'll likely need to provide a doctor's note or other documentation to support your claim.

It's important to consult with your HR department or a qualified tax advisor for specific guidance on the tax implications of using your LSA for meal delivery services. They can help you understand how your reimbursements will be treated for tax purposes and ensure you're in compliance with all applicable regulations.

How can employers implement meal delivery as an LSA category?

If you're an employer looking to add meal delivery services as an eligible expense under your Lifestyle Spending Account (LSA) program, here are the key steps to follow:

Determine eligible expenses

First, decide which types of meal delivery services align with your company's wellness goals and values. This may include healthy meal kit subscriptions, grocery delivery services, or even restaurant delivery options that focus on nutritious choices. Consider surveying your employees to understand their preferences and needs when it comes to meal delivery.

Set spending limits

Establish clear guidelines for how much employees can spend on meal delivery services through their LSA. This could be an annual or monthly allowance, depending on your budget and program design. Keep in mind that these limits should be sufficient to make a meaningful impact on your employees' wellness while also being financially sustainable for your organization.

Communicate guidelines to employees

Once you've determined the eligible expenses and spending limits, clearly communicate these guidelines to your employees. Provide detailed instructions on how they can use their LSA funds for meal delivery services, including any approved providers, spending caps, and the process for submitting claims for reimbursement. Consider creating a dedicated resource page or FAQ document to help employees navigate this new benefit.

Partner with an LSA administrator

To streamline the implementation and management of your meal delivery LSA category, choose a provider like Forma that specializes in administering these programs. An experienced LSA administrator can help you design your program, onboard employees, process reimbursements, and ensure compliance with relevant regulations. They can also provide valuable insights and reporting to help you track the success of your meal delivery benefit and make data-driven decisions for future enhancements.

By following these steps and partnering with a trusted LSA administrator, you can successfully implement meal delivery as an eligible expense category within your Lifestyle Spending Account program. This addition can help support your employees' wellness goals, reduce stress around meal planning, and contribute to a more positive work-life balance within your organization.

Is using an LSA for meal delivery worth it?

For many employees, using a Lifestyle Spending Account (LSA) for meal delivery services can be a worthwhile investment in their overall well-being and work-life balance. These benefits demonstrate your employer's commitment to supporting your health and happiness, both in and out of the office.

Meal delivery services covered by LSAs can save you valuable time and energy, reducing the stress of meal planning, grocery shopping, and cooking. This can be especially beneficial for busy professionals, working parents, or those with demanding schedules. By simplifying your meal routine, you can focus on other priorities, such as career development, family time, or self-care activities.

Moreover, many meal delivery services prioritize healthy, nutritious options, making it easier for you to maintain a balanced diet. This can contribute to improved physical health, increased energy levels, and better overall well-being. When you feel your best, you're more likely to perform at your highest level both personally and professionally.

From an employer's perspective, offering meal delivery as part of an LSA program can be an effective way to attract and retain top talent. In today's competitive job market, employees increasingly value benefits that support their holistic well-being. LSAs provide a flexible, personalized approach to employee benefits that can set your company apart and boost employee satisfaction and loyalty.

However, employers should carefully consider the costs and administrative requirements associated with including meal delivery in their LSA offerings. This may involve researching different service providers, setting appropriate spending limits, and ensuring a seamless reimbursement process. Partnering with an experienced LSA administrator can help streamline these tasks and ensure a successful program implementation.

Ultimately, the decision to use an LSA for meal delivery depends on your individual needs, preferences, and overall wellness goals. If you value the convenience, nutritional benefits, and stress-reducing potential of meal delivery services, this may be a perk worth exploring with your employer.

Whether meal delivery services qualify for LSA reimbursement depends on your employer’s plan. Forma simplifies LSA management by offering flexible benefit solutions that support employee wellness, including meal delivery and other lifestyle perks. Schedule a consultation with one of our experts today.