Lifestyle Spending Accounts (LSAs)
A Lifestyle Spending Account is an employer sponsored benefit which enables employers to add money to an employee’s payroll to be used on Lifestyle benefits.
This benefit type is very simple for the employer to manage. An LSA has no government or IRS rules or qualifications requirements. An LSA is very flexible in that an employer can offer this to benefit to a certain group of employees and is not required to offer it to all, for example.
The employer can also start and stop this benefit at any time, there are no enrollment periods or any other qualification requirments.
This benefit is very simple to manage as there is literally no other administration work other than adjusting the payroll of employees. There are no receipts or expenses to reimbursed.
LSAs are often used to promote your 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 so should be aware that the monthly contribution becomes part of their taxable income. This is a trade off as it is what enables an LSA to have such flexibility along with no restrictions or qualification requirements