Promote healthy habits and overall well-being by creating your fully customizable, post-tax Lifestyle and Wellness account. Offering a flexible and customizable plan your employees want, simplify the participant/s experience, while easily managing your entire offering in one place.
Lifestyle and wellness Spending Accounts (LWSAs) are a fully customizable, post-tax benefit that gives employers full control to create a plan that promotes healthy habits and overall well-being.
LSWAs are being used by employers to better attract and retain employees. It is common for employers to consider eligible expenses that range from physical wellness (gym memberships, exercise equipment, etc.), financial wellness (student loan reimbursement, financial adviser costs, etc.), emotional wellness (meditation classes, counseling services, etc.) and other expenses that could improve employee well-being (pet care, camping equipment, etc.).
Employers have a number of factors to consider when customizing their LSWA including the following:
There are 3 categories to consider:
Employers should consider a number of different things including:
Listed below are common eligible expenses, but these can be customized beyond what is listed based on what the employer is looking to accomplish:
Emotional Wellness and Other:
Eligible expenses that only apply to a very small population of employees and are used to supplement health insurance should not be lumped into the LSWA.
If pre- tax dollars are contributed by employer/employee for specific eligible expenses, you will need to establish a separate pre-tax benefit plan to take advantage of the tax benefits that are allowed by the IRS. For example, commuter benefits, tuition reimbursement, adoption assistance, etc. are eligible for tax benefits and will be separated from the LSWA so the employer/employee can take advantage of the pre-tax benefits.
Below is some additional detail on a few examples.
Since the employer funds an LSWA with post-tax dollars, the dollars a consumer spends are considered taxable income to employees.
Substantiation requirements are determined by ABS / employers.
No more jumping from screen to screen(and having to remember multiple logins) to keep track of multiple benefit accounts. Participants only need one online account to manage their benefits.
We manage almost all aspects of our lives from the palms of our hands. The ABS mobile app was built with that in mind, and includes a consistent, simple, intuitive and modern experience. When using a desktop, you will encounter the same user-friendly experience
Advanced Benefit Strategies
30 Mill Street
Unionville, CT 06085