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Compliance & standards

Professional Development Spending Account eligibility standards

Understand what a Professional Development Spending Account is, how it works, what to include categorically, and the top items to cover - plus compliance protips!

5
 Min Read 
• 
2/22/24

Support workforce personal and professional development

A Professional Development Account is an employer-sponsored benefit that prioritizes the needs of employees seeking to advance their learning and skills. Employees spend their dollars on the specific skills they want to develop, helping the employer maximize the impact of the investment.

Note: Depending on what you'd like to include in this program, the account can be set up as taxable or tax-advantaged.

How a Professional Development Spending Account works

Compared to formal training programs or direct-to-payroll education stipends, Professional Development Spending Accounts offer a groundbreaking solution benefitting both the employer and employee. 

  • Employers set the rules for what expenses are eligible under the benefit. 
  • Employees are empowered as they can choose how they want to use their professional growth funds to learn and grow new skills. 

Why a Professional Development Spending Account is important

An organization's success depends on its people. And, cultivating employee skills is imperative for both the employer and employee. Professional Development Spending Accounts can help businesses recruit and retain top performers. With a Professional Development Account, you can help ensure your workforce has the necessary skills to be productive and succeed in today’s competitive market.

As a leader in the flexible benefits space, we have the industry's first eligibility standards for customizable spending accounts. You can download a copy of the standards set for a Professional Development Spending Account here or by clicking the below image.

You can access a preview of what you'll find in the Professional Development Spending Account eligibility standards below.

Know what a Professional Development Spending Account is, how the benefit works, and why it's important.
Get a breakdown of the trending categories and items offered in a Professional Development Spending Account - as well as what not to include to remain compliant.
Learn about additive options to include in Professional Development Spending Account.
Use benchmark data to make informed decisions when building a Professional Development Spending Account program.

Get help building a custom Professional Development Spending Account

The Forma team can offer guidance - backed by data - as you explore your options. For more information or support, <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!  

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