Breaking down Lifestyle Spending Account eligible expenses
Lifestyle Spending Accounts allow employees to decide what’s important to them. This page will in no way be an exhaustive list of all Lifestyle Spending Account eligible expenses because LSAs are fully customizable, but will cover the most popular categories.
LSAs are sometimes known simply as wellness accounts — where many employers offer gym memberships and caregiving to lifestyle and work-from-home support. LSAs are flexible, so the available choices can exceed gym membership benefits. They give employees control of their benefits, allowing them to choose what best fits their lifestyle and feel empowered.
Metlife's found that 60 percent of people are interested in a wider mix of/non-medical benefits that they can choose to purchase. That’s to say, when your competitors come knocking, you won’t lose your best employees to a better benefits package. The most versatile employee benefits package option you can offer is a Lifestyle Spending Account (LSA).
Most popular LSA accounts
There are endless options for designing a benefits spending account program. Truly, the only limiting factors are imagination and budget. Each program is distinct, requiring a choice of numerous factors, e.g. account kind; categories; sub-categories for particular goods, services, and sellers; and funding options. Understanding the chosen factors gives insight into how companies with similar characteristics are building relevant programs.
In this 2022 Lifestyle Spending Accounts benchmark report, we identified the top LSA accounts and eligible expenses under these programs.
Lifestyle: covers expenses that are related to personal or recreational activities, such as gym memberships, hobbies, travel, and other forms of entertainment.
Wellness: covers expenses keeping body and mind in shape, e.g. gym subs, exercise sessions, counseling, and other wellbeing-related pursuits.
Work from home: covers expenses related to working from home, such as office furniture, technology, and other equipment necessary for remote work.
Learning: covers expenses related to personal or professional development, such as books, classes, workshops, and other forms of education.
Family formation: covers expenses related to starting a family, such as adoption, fertility treatments, and other related costs.
Caregiving: pays for costs associated with looking after a family member, including home health services, relief care, and other types of senior care.
Rewards: covers expenses related to incentive programs or rewards for achieving certain goals, such as rewards for losing weight, quitting smoking, or other personal achievements.
Tuition/student loans: covers expenses related to higher education, such as tuition, student loans, and other related costs.
Team development: covers expenses related to growing and strengthening team connections, i.e. team-building activities, getaways, etc.
Commute: covers expenses related to transportation to and from work, such as public transportation, parking, and other related costs.
Donations: covers expenses related to charitable giving, such as donations to non-profit organizations, religious institutions, and other charitable causes.
Health check: covers expenses related to regular health check-ups, such as annual physicals, blood tests, and other preventative screenings.
Finance: covers expenses related to managing personal finances, such as financial planning, investment advice, and other related costs.
Food: covers expenses related to food, such as meal delivery, grocery delivery, and other related costs.
Mental health: covers expenses related to mental health, such as therapy, counseling, and other related costs.
Vision: covers expenses related to vision care, such as eye exams, glasses, and contact lenses.
Covid-19: covers expenses related to the Covid-19 pandemic, such as personal protective equipment, cleaning supplies, and other related costs.
Pet: covers expenses related to pets, such as veterinary care, pet food, and other related costs.
Lifestyle Spending Account customer stories
"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."
Sourcing and recruiting leader at Microsoft
"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."
Global Benefits Leader at Dropbox
For more information about Lifestyle Spending Accounts and 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.