Lifestyle Spending Accounts (LSAs)
The Workforce Wellness Plan (WWP) is considered a “Lifestyle Spending Account” it enables employers to add money to an employee’s payroll to be used on specified lifestyle benefits.
This benefit type is very simple for the employer to manage. An LSA has no government or IRS rules or qualification requirements. It is also flexible in that an employer can offer this benefit to a certain group of employees and is not required to offer it to them all.
The employer can start and stop this benefit at any time. There are no enrollment periods or any other qualification requirements.
The payroll department simply adds the contribution alloted to the pay check of each employee.
There are no receipts or expenses to reimburse and reconcile.
The employees manage this benefit themselves.
LSAs are often used to promote business culture and values and aligning with trusted and respected vendors like Shaklee allows for this association.
Employees are free to “opt in” to what is essentially a salary increase and as a result, becomes part of their taxable income. This is a trade-off as this is what enables an LSA to have such simplicity and flexibility.
All Lifestyle benefits offered by an employer are considered perks or fringe benefits. Other examples of LSA benefits are fitness club memberships, financial counseling, home office expenses, caregiving, child day care services, sports league and athletic club memberships, dog walking services etc.