Lifestyle Spending Account
A lifestyle spending account is an employer-contributed account set up for employees so that they are able to purchase the perks which are most meaningful to them and their needs.
To set up a lifestyle spending account, companies set basic parameters for their employees’ lifestyle spending accounts including how much each employee can spend, within what timeframe, in which categories, and who pays the taxes. Companies often align the categories of spending with the mission, vision, values, culture or company goals.
Lifestyle spending accounts are an ideal option for companies that wish to personalize their employee perks, support satellite offices or remote employees, ensure IRS tax compliance with perks, and remove the administrative burden on HR for managing individual perks and vendors.
This sounds perfect, doesn't it? Want to understand how LSAs actually work? Read all you need to know about them here!
Sources: HR Daily Advisor, Lifestyle Spending Account eBook.