Understanding what counts as eligible expenses in your lifestyle spending account

What is a lifestyle spending account and why does it matter for candidates

Why Lifestyle Spending Accounts Are Gaining Attention

In today’s competitive job market, companies are looking for ways to stand out and attract top talent. One benefit that’s become increasingly popular is the lifestyle spending account (LSA). Unlike traditional health spending accounts (HSA) or flexible spending accounts (FSA), LSAs give employees more freedom to use funds on a wide range of eligible expenses that support their overall well-being. This flexibility can include physical health, mental health, and even financial planning services.

How LSAs Reflect Company Values and Candidate Experience

Employers choose to offer LSAs because they want to show they care about the whole employee, not just their work output. By supporting employees with a spending account that covers gym memberships, wellness services, and other eligible reimbursement options, companies send a clear message about their values. This can have a direct impact on candidate experience, as job seekers increasingly look for benefits that support their lifestyle and personal goals.

LSAs as a Tool for Attracting and Retaining Talent

Offering a lifestyle spending account can make a company more attractive to potential hires. It’s not just about the money—it's about giving employees access to resources that help them thrive. LSAs can cover a variety of expenses, from fitness classes to mental health support, making them a versatile benefit. For candidates, knowing that a company invests in their well-being can be a deciding factor in accepting a job offer.

If you’re interested in how LSAs fit into a broader strategy for improving the candidate journey, you might want to read about enhancing candidate experience with a comprehensive workflow approach.

Common eligible expenses in a lifestyle spending account

Typical Categories Covered by Lifestyle Spending Accounts

When it comes to lifestyle spending accounts (LSAs), understanding which expenses are eligible is key for both employees and employers. LSAs are designed to support employees’ overall well-being, and companies often tailor these accounts to reflect their values and benefits strategy. The most common expenses eligible for reimbursement through an LSA focus on health, wellness, and financial support.

• Physical health: Gym memberships, fitness classes, sports equipment, and personal training sessions are frequently covered. These options help employees maintain an active lifestyle and support physical health.
• Mental health: Many LSAs include reimbursement for counseling, therapy, meditation apps, or stress management workshops. This demonstrates a company’s commitment to employee mental well-being.
• Wellness services: Eligible expenses often extend to massage therapy, nutrition counseling, or wellness retreats. These services encourage holistic health and can improve employee satisfaction.
• Financial planning: Some LSAs allow for financial wellness services, such as sessions with a financial advisor or access to budgeting tools. This helps employees manage their finances more effectively.
• Other common benefits: Companies may offer reimbursement for ergonomic office equipment, commuter benefits, or even childcare support, depending on their LSA policy.

Employers choose these categories to align with company values and to offer employees meaningful support beyond traditional benefits like HSA or FSA accounts. Unlike those pre-tax accounts, LSAs are typically post-tax and offer more flexibility in eligible reimbursement options.

For a deeper look at how unique employee benefits like LSAs can shape a memorable candidate experience, check out this resource on how unique employee benefits shape a memorable candidate experience.

As you explore your company’s LSA, remember that eligible expenses may vary. Always review your plan details to ensure you’re making the most of your lifestyle spending account and maximizing the support available to you.

Unusual or often-missed eligible expenses

Hidden gems: Overlooked eligible expenses in LSAs

When employees think about lifestyle spending accounts (LSAs), gym memberships and fitness classes often come to mind first. However, LSAs can support a much broader range of eligible expenses that align with company values and employee wellness goals. Recognizing these less obvious options can help employees maximize their spending account and employers demonstrate a deeper commitment to holistic well-being.

• Mental health services: Many LSAs cover counseling, therapy sessions, meditation apps, or even stress management workshops. These benefits go beyond traditional health insurance and can be a lifeline for employees seeking mental health support.
• Financial planning and wellness: Eligible reimbursement may include sessions with a financial advisor, budgeting tools, or workshops on personal finance. This reflects a growing trend where employers choose to support employees’ financial health alongside physical health.
• Home fitness equipment: Not just gym memberships—LSA funds can often be used for purchasing yoga mats, weights, or even ergonomic office chairs, supporting physical health for remote or hybrid employees.
• Nutrition and healthy eating: Some LSAs allow for reimbursement of nutritionist consultations, healthy meal delivery services, or cooking classes focused on wellness.
• Family and caregiving support: Certain spending accounts include eligible expenses like parenting classes, eldercare support, or childcare services, broadening the impact of LSAs on employees’ lives.
• Alternative wellness services: Acupuncture, massage therapy, or even mindfulness retreats may be eligible, depending on the company’s LSA policy.

Employers often tailor their LSA offerings to reflect their unique company culture and values. This flexibility means that what counts as an eligible expense can vary widely. Employees should always check their company’s LSA documentation or reimbursement guidelines to confirm what’s covered. For a deeper dive into how companies can make these options accessible and user-friendly, explore this guide to user-friendly mapping for candidate experience.

By being aware of these often-missed eligible expenses, employees can make the most of their lifestyle spending accounts, while employers can offer employees a more inclusive and supportive benefits experience.

How to verify if an expense is eligible

Steps to Confirm Your Expense is Covered

When it comes to lifestyle spending accounts (LSAs), knowing if your expense is eligible can save time and avoid frustration. LSAs are designed to support employees’ well-being, but each company sets its own rules for what counts as an eligible reimbursement. Here’s how you can check if your spending fits the criteria:

• Review your company’s LSA policy: Most employers provide a detailed list of eligible expenses. This can include wellness services, gym memberships, mental health support, and more. Always start by reading the official documentation or benefits portal.
• Check for exclusions: Some spending accounts exclude items that might seem eligible, such as over-the-counter supplements or certain financial planning services. Make sure you’re not missing any fine print.
• Ask HR or your benefits provider: If you’re unsure, reach out directly. HR teams or third-party administrators can clarify which expenses are eligible and explain the reimbursement process.
• Look for required documentation: Many LSAs require receipts or proof of purchase. Some may also need a description of the service or product to confirm it supports physical or mental health.
• Compare with other accounts: If you have an HSA or FSA, remember that LSAs often cover different categories. For example, LSAs might include wellness or lifestyle expenses that are not eligible under traditional health accounts.

Why Eligibility Matters for Employees and Employers

Understanding what’s covered helps employees make the most of their LSA funds and aligns spending with company values. For employers, clear communication about eligible expenses builds trust and shows commitment to employee well-being. It also reduces confusion and administrative work around reimbursement LSA claims.

Ultimately, verifying expense eligibility is a simple but important step in maximizing the benefits of lifestyle spending accounts. It ensures employees can access LSA support for their physical health, mental health, and overall wellness, while companies maintain compliance and support employees effectively.

The impact of lifestyle spending accounts on candidate experience

How Lifestyle Spending Accounts Shape Perceptions of Employers

Lifestyle spending accounts (LSAs) are becoming a key factor in how candidates and employees view a company’s commitment to well-being. When employers choose to offer employees access to LSAs, it signals a genuine investment in their physical health, mental health, and overall lifestyle. This support goes beyond traditional benefits like HSA or FSA, providing flexibility for eligible expenses that matter to individuals—whether that’s gym memberships, wellness services, or financial planning tools.

Building Trust and Reflecting Company Values

A well-structured spending account program can reinforce company values. When employees see that their employer supports a wide range of eligible reimbursement options, it builds trust and loyalty. Companies that clearly communicate which expenses are eligible and make the reimbursement LSA process simple show that they value transparency and employee well-being. This transparency can be a deciding factor for candidates comparing job offers, especially in competitive markets.

Enhancing Recruitment and Retention

Offering lifestyle spending accounts can give employers a competitive edge. Candidates increasingly look for benefits that support both their health and lifestyle needs. LSAs help companies stand out by addressing diverse needs, from physical health to financial wellness. Employees who feel supported by their benefits are more likely to stay, reducing turnover and strengthening the company’s reputation as a supportive workplace.

Reducing Stress and Improving Engagement

When employees have access to LSA funds for eligible expenses, it can reduce financial stress and improve overall engagement. Knowing that the company supports expenses related to wellness, mental health, and other lifestyle needs helps employees feel valued. This, in turn, can lead to higher productivity and a more positive workplace culture.

Key Takeaways for Employers

• LSAs show a commitment to employee well-being and company values.
• Clear communication about eligible expenses and reimbursement processes is essential.
• Offering flexible spending accounts can improve recruitment, retention, and engagement.
• Supporting a range of lifestyle needs helps employees feel valued and reduces stress.

Practical tips for maximizing your lifestyle spending account

Smart ways to make the most of your lifestyle spending account

Understanding your lifestyle spending account (LSA) is the first step to maximizing its value. Many employees overlook the full range of eligible expenses, which means they could be missing out on benefits that support both their physical and mental health. Here are some practical strategies to help you get the most from your LSA:

• Review your company’s eligible expenses list regularly. Employers choose which expenses are covered, and these can change from year to year. Always check the latest guidelines to ensure you’re not missing new eligible reimbursement options.
• Plan your spending throughout the year. Don’t wait until the last minute to use your LSA funds. Map out your wellness, fitness, or financial planning needs in advance so you can spread your spending and avoid a last-minute rush.
• Explore less common eligible services. Beyond gym memberships and fitness classes, some LSAs cover mental health support, nutrition counseling, ergonomic equipment, or even certain wellness apps. These can make a big difference in your overall well-being.
• Keep documentation for reimbursement. Save receipts and proof of payment for all expenses eligible under your LSA. This makes the reimbursement process smoother and ensures you don’t miss out on any benefits.
• Coordinate with other accounts. If you have an HSA or FSA, understand which expenses are best claimed through each account. Some expenses may be eligible for reimbursement from multiple sources, but rules about post tax and pre-tax spending can affect your choices.
• Ask questions if you’re unsure. If you’re not certain whether an expense is eligible, reach out to your HR team or benefits administrator. They can provide clarity and support employees in making the most of their accounts.
• Align spending with your personal goals. Use your LSA to support what matters most to you, whether that’s physical health, mental health, or financial well-being. This not only maximizes your benefits but also helps you feel more supported by your company.

Employers offer employees LSAs to reinforce company values and support a diverse range of employee needs. By being proactive and informed, you can ensure your spending account truly benefits your lifestyle and well-being.