Lifestyle Spending Account
Give Your Employees What They Really Want – And Still Pay Less!
Lifestyle Spending Accounts are a great way to offer your employees a benefit or bonus that can actually be more meaningful than cash (which often disappears into a line of credit or mortgage). You decide how much each employee has access to, and you decide what they can spend it on. It’s that easy.
HOW DOES A LIFESTYLE SPENDING ACCOUNT WORK?
A Lifestyle Spending Account is a self-insured, private spending plan that can be used as standalone coverage or an incentive for your employees. It can also supplement a group benefits plan or Health Spending Account. There’s no maximum number of employees, and the minimum number is just one employee (or sole proprietor).
Important: With a Lifestyle Spending Account, you determine how much you’d like your employees to have access to, and you only pay for expenses your employees actually claim.
GIVE YOUR EMPLOYEES WHAT THEY REALLY WANT – AND STILL PAY LESS!
First, you decide on the amount of money your employees will have access to and choose the types of expenses that will be covered by your Lifestyle Spending Account. When your employees make qualifying purchases, you (or your company) put the appropriate amount into the LSA, from which your employees are reimbursed. That expense becomes a 100% deductible expense for the company.
LIfestyle Spending Account Vs. Health Spending Accounts
Lifestyle Spending Accounts are very similar to Health Spending Accounts; the primary difference is the type of expenses that can be eligible
LIFESTYLE SPENDING ACCOUNTS:
- Fitness services and equipment
- Alternative health & wellness
- Personal development
- Sports equipment or fees
- Childcare or eldercare
- Pet care
- Any other class of expenses approved by you
HEALTH SPENDING ACCOUNTS:
- Dental
- Orthodontics
- Paramedical Services
- Vision
- Prescription Drugs
- Other expenses approved by the CRA
CAN YOU COMBINE A LIFESTYLE SPENDING ACCOUNT WITH A HEALTH SPENDING ACCOUNT?
Absolutely! In fact, there are products that do just that. Please contact us and we’ll walk you through it.
WHY HAVE YOU NEVER HEARD OF A LIFESTYLE SPENDING ACCOUNT?
Lifestyle Spending Accounts are still fairly new, and so they’re not getting the attention they deserve. But they will. Truly, Lifestyle Spending Accounts are all upside for everyone involved.
Contact us today to find out more about Lifestyle Spending Accounts or to set one up for your company.