Lifestyle spending accounts are flexible benefits accounts that employees can use as perk stipends to pay for services or products. “Lifestyle” can be defined as anything that improves an employee's well-being, which could include leisure, pet care, cleaning services, travel, and an assortment of other activities.
Employee stipends can usually be accessed in one of two ways - either through a virtual account that can be used on a marketplace or by submitting a claim for reimbursement. Funds can be used to cover any expenses related to the employee's lifestyle choices, as long as those expenses fall within the defined parameters.
This type of account can be a great way for businesses to show their employees that they care about their well-being. At the same time, it gives employees the freedom and flexibility to make their own choices about how to improve their lives. These solutions can also be used to manage existing fringe benefits such as healthy meals, pet care expenses, and more.
Lifestyle spending accounts provide employees and employers alike with flexibility and reduced administrative burden. Employees can utilize their funds to satisfy their unique needs rather than being bound to a single benefit or solution that may not be relevant. Many organizations use lifestyle spending accounts as a stipend management tool to manage their gym membership reimbursements but are increasingly realizing the potential of this solution to engage and motivate employees.
Some potential uses for a lifestyle spending account include:
As LSAs become more popular, there is an explosion of providers, each with its own strengths and weaknesses. It can be difficult to know what each company offers, which features are a suitable fit for a given organization, and how relevant the marketplace and reimbursement options are to that organization’s demographic.
To ease the lifestyle spending account vendor search process, check out Wellable’s curated list below of the top lifestyle spending account companies in 2023.
Employers can use Employee Benefits Corporation's LSA to establish an account to support workers' daily needs without having to manage additional reimbursements. Each employee is unique, so EBS allows firms to provide employees with the option of using after-tax funds for costs not covered by typical benefits. Employers provide the program parameters using an LSA, specifying how much workers will get and what the money may be used for, and EBS handles the rest.
With Wellable’s Lifestyle Spending Account (powered by ThrivePass), companies can (1) automate rewards management, (2) simplify expense reimbursement, and (3) offer employees a diverse virtual marketplace. It is the best option for companies looking to boost engagement in their wellness program, but also an excellent choice as a standalone solution.
Automate Rewards Management: Employers choose the amount and frequency of contribution, as well as eligible expenses from over 100 spending categories. ThriveAccounts are accessible directly from Wellable's Wellness Platform, providing a seamless user experience.
Simplify Expense Reimbursement: Reimbursement claims are verified by ThrivePass and can be authorized on the company's behalf. Currency conversions are also provided for personnel based outside of the United States.
Diverse Virtual Marketplace: ThriveAccounts provide employees access to an online shopping experience with services, goods, digital apps, and other lifestyle businesses with exclusive promotions, discounted products, and early product releases. Employers have access to reports that give insight into employee engagement and expenditure trends.
Thoughtfully-designed, holistic solutions that work for employers and employees. No compromises.
Companies can give their workers the power of choice when it comes to their personal well-being goals using the Benepass LSA. Employers can specify what items qualify for their employees' lifestyle spending accounts: wellness, diet, mental health, career growth, and other elements can all be considered lifestyle pillars. Benepass works their magic by explicitly coding corporate regulations into the Benepass Platform and Visa Benecard, then interfaces to payroll systems to streamline enrollment, allowing teams to join the platform from day one.
Optum's Lifestyle Spending Accounts enable businesses to create a benefit plan that reflects their unique beliefs. Optum allows customers to design a strategy based on their employees' goals to assist them in addressing specific life issues. Then, clients may choose the eligible expenses, calculate the benefit amount, and set other parameters. Companies can also decide to provide the same benefit to all employees or tailor benefits to various segments. Optum has post-tax, family account, and crisis relief options.
Employers can offer a monthly, quarterly, or yearly stipend to employees and allow them to tailor their benefits to fit their lives using Fringe's Lifestyle Benefits Platform. Fringe will satisfy clients with best-in-class and diverse offerings, whether it is replacing a gym reimbursement or extending a lunch stipend program. Fringe is known for its quick launches, stipend points program, and is available in over 50 global locations!
WageWorks offers multiple Lifestyle Benefits Programs including a tuition reimbursement program, fitness reimbursement program, and a bicycle reimbursement program. Their tuition reimbursement program assists employees in achieving their educational objectives. Employees who participate in this employer-sponsored program are reimbursed for tuition and other expenses paid to schools, residencies, and other educational institutions. Their fitness reimbursement program can assist employees in saving money on healthy living choices. The bicycle reimbursement program encourages employees to travel to work in a healthy and ecologically responsible manner. This program is funded by the company and reimburses employees for normal bicycle expenditures.
WEX simplifies LSAs for everyone, from reducing your procedure to generating tailored experiences for participants. With its user-friendly benefits platform, businesses may monitor and change participant accounts, examine reports, and upload documents all in one spot. Increase efficiency by integrating with 350+ payroll/HRIS/benefit administration partners and over 225 insurance carriers. Create a consistent, user-friendly experience for employees by providing them with one modern, user-friendly online account, one bank card for all benefits, and one mobile app that allows them to easily control and manage their benefits even when they are on the go.
JOON is a flexible wellness benefits program that employees genuinely use and value. JOON is redefining advantages ranging from health and wellness to learning and development. JOON's card-connected experience is used by 100+ businesses to instantly turn any category or popular merchant, from Peloton to Udemy, into a reimbursable employee reward. JOON is one of the easiest ways to reimburse employees. Benefit users' expenditures are stretched even further thanks to unique savings at JOON's health and lifestyle partners.
Employers can use Ameriflex's Lifestyle Spending Account to assist their employees with paying for health and wellness expenses, as well as other charges that aren't typically covered by a group health plan. Employers have control over which costs are paid and how much each employee receives. Employers pay the LSA with money that is taxed to the employee after they spend it, unlike other spending accounts such as their flexible spending accounts.
Holisticly is a completely integrated platform for managing wellness stipends. Simply establish an appropriate stipend, and then teams can select from a variety of their preferred goods and memberships. There will be no refunds or cards, just an amazing experience that employees will thank their employer for. Fitness, mental health, financial well-being, nutrition, and continuous learning solutions are among the many options. It’s simple to implement Holisticly any time of year!
Forma Life Benefits prioritizes flexibility. Forma assists in curating a mix of benefits that stretch to match any lifestyle, from health insurance and PTO to gym classes and retirement plans. Forma’s lifestyle benefit categories include family & relationships, education & career, well-being & lifestyle, basic health & protection, money & wealth, and work & performance.
ABS takes a hands-on approach to simplify and deliver solutions that eliminate the bother of employee benefit management. Create fully personalized, post-tax Lifestyle & Wellness accounts to promote healthy habits and general employee well-being. ABS allows companies to offer flexible and adjustable plans that employees desire, simplifies the participant's experience, and the whole offering can be managed in one location.
With Espresa's Global Lifestyle Spending Account (LSA) + Employee Reimbursement platform, companies can give employees the flexibility to choose. Employee reimbursement initiatives pose a considerable strain to already overburdened HR personnel. The Espresa platform does this effectively, allowing businesses to support initiatives that highlight and showcase their culture benefits. Espresa gives HR total power over employee incentives. Create an infinite number of customized allowance plans by nation, currency, time zone, region, and employee classification. Furthermore, they will white label the platform to provide a distinctly branded experience.
Companies sponsor and finance NueSynergy Lifestyle Spending Accounts (LSAs) to assist employees in supporting health and wellness activities in their life. Their LSA includes expenditures that are frequently reimbursed. If an organization wants to design an LSA for their workers, NueSynergy may assist them with choosing appropriate items and services, which are then administered through NueSynergy's system. This LSA gives flexibility to benefit plans and is simple for businesses to create and manage. Employees and their dependents can utilize the company's yearly employer contribution for anything that supports their health and wellness that is deemed eligible.
Elevate's adjustable features make it simple to create and customize business benefit programs that bring specific concepts to life. Their easy-to-use, completely customizable plan generator gives businesses maximum flexibility – even at the sub-plan level. Employers may use Elevate's Lifestyle Programs to take advantage of fitness, fertility, tuition, or adoption benefits — or their own customized wellness programs.
Compt provides perk stipends suited to the demands of a company's staff. Their software is used to create and scale employee benefit stipends so that companies may assist their team no matter where they live or what their current life situation is. Their user-friendly platform makes it simple to establish a personalized benefits program with limitless incentive alternatives. Compt's Employee Stipends program enables businesses to offer employee perks that align with their culture and attract talent, all without the complexity of DIY perk programs or point-based systems.
Honeybee allows businesses to deposit a predetermined amount of money into employee Allowance Accounts monthly. Employees may then spend those funds on a range of expenses in categories chosen by their company, much like a bank account. All through an easy-to-use app! Honeybee Allowance Accounts are a quick and simple method to eliminate the administrative burden of lifestyle benefits.