Lifestyle Spending Accounts: the ultimate guide for employers and employees

In today’s hyper-competitive job market, where employees are looking for opportunities to advance their career and gain skills, attracting and retaining top talent requires more than just traditional benefits packages and a competitive salary. 

Introducing the LSA, an employer-funded benefit that empowers employees to tailor their benefits to their individual needs and aspirations. Can you do more with your benefits?


What is a Lifestyle Spending Account?

You may have heard of LSAs by different names – lifestyle accounts, wellness accounts, perk allowance – but they all have one thing in common: they’re the newest, most versatile benefit option in the market.

These customized, employer-funded accounts cover diverse living expenses, from gym memberships to child care costs, offering unprecedented flexibility and customization to meet the needs of each employee.

LSAs offer more than just perks – they enhance employee well-being, improve recruitment and retention rates, boost morale and productivity, and make companies more competitive. 

 It’s no wonder that 70% of companies are considering adding an LSA to their benefits package (Mercer Insights Survey, 2022). 

 Keep reading to discover how to make the best decision for your employees and organization.


LSAs in action

Get insights into how other companies are achieving success with lifestyle accounts.

Consulting company

51% of the employees participated in the program, resulting in better retention and recruitment.

Biotech startup

Program launched in July 2022 and, so far, has been successful in helping employees’ well-being without worrying.

How does our LSA program work?

We’ve put together a comprehensive guide on our wellness program to help you understand how it works.

Customization options

LSAs are highly customizable, with no minimum or maximum annual contributions. You can opt for a “use it or lose it” approach or accept the rollover of unused funds. By choosing eligible expenses, employees make purchases and obtain reimbursements up to their allocated sum. Adjust the program to best suit your organization’s requirements.

Eligible expenses

The company’s existing LSAs cover a wide range of employee expenses, from child care to transportation and home office equipment. They’re an ideal solution for the company’s needs and budget. You could include categories such as active lifestyle, entertainment, family and personal needs, home improvement, restaurants and groceries, transportation and mobility, and travel. Ultimately, it’s your choice.

Tax Implications

Yes, LSAs don’t come with tax advantages and are post-tax funded. But, there’s a cool side to them too. By joining forces with a lifestyle accounts vendor, your company can introduce an array of expense categories through specific partners who offer discounts. This action lets your employees have a field day with their benefits, getting more bang for their buck, and the best part? It makes your company’s budget stretch even further.

Administration process

We’ve designed our wellness program to be as easy to use as possible, so you can always find the information you need.  As an employer, you have the total control costs and offerings for in-office, remote, and hybrid employees. You can also set restrictions, including geographic, eligible days, and spending limits, to provide the optimal experience for your employees.


The top 5 employee frustrations that our LSAs can alleviate

Limited healthcare coverage

Imagine Sarah, a young professional who loves to stay active. Unfortunately, her employer’s healthcare plan doesn’t cover gym memberships, leaving her to pay out-of-pocket. With a lifestyle program, employees like Sarah could use post-tax funds for things like gym memberships. This helps employees and companies address healthcare gaps.

Financial stress

Meet Joe, a hardworking employee who’s constantly juggling financial responsibilities. As you know, financial stress can lead to anxiety and decreased productivity. A wellness program can help alleviate this burden by offering support for various expenses, promoting financial well-being for employees like Joe.

Lack of flexibility

Let’s talk about Lisa, a busy mom trying to balance her career and family life. Lisa needs flexibility in her healthcare coverage to accommodate her family’s unique needs. An LSA program can empower employees like Lisa by providing a wide range of eligible expenses to choose from, based on individual preferences. This flexibility leads to happier employees who feel cared for by their employers.

Travel challenges

Let’s take a moment to imagine Emily, a passionate traveler who yearns to explore new horizons and create unforgettable memories with her loved ones. Emily’s  card’s travel category lets you book airline tickets for your dream destinations, arrange car rentals for convenient transportation, and even embark on unique journeys such as cruise lines for a luxurious escape.

Limited work-life balance

Lastly, think about Rachel, an employee struggling to find time for self-care amid her busy work schedule. An LSA program can encourage better work-life balance by offering post-tax funds for self-care and personal wellness expenses, such as yoga classes, pilates or massages. With this support, employees like Emily can prioritize their health and well-being, leading to a happier, more productive workforce.


Why are they important to the employer?

Discover the compelling reasons Lifestyle Spending Accounts can set your company apart in a competitive landscape.


As employees’ wellness needs differ depending on their life stage, LSAs enable employers to get creative and cater to their diverse workforce. Employees now have the freedom to make decisions tailored to their unique needs thanks to the program, which empower them to play a more proactive role in their healthcare decisions.


Lifestyle programs are not only a win for employees but also for employers seeking cost-effective solutions. By focusing on employees’ well-being, our LSA program offers a customizable and budget-friendly way to fund benefits that address the specific needs and goals of the workforce,  without needing to sacrifice other areas of their life.

Attract and retain talent

A well-rounded benefits program can be a magnet for top talent. Research has shown that employees who feel supported by their employer’s well-being benefits are more likely to stay with the company. In fact, Gallup found that 61% of employees consider well-being ‌a crucial factor when choosing an employer.


No two companies are alike, and neither are their employees’ needs. Our lifestyle benefits provide a unique opportunity for employers to create a tailored benefits package, covering expenses such as education, active lifestyle, transportation, home office equipment, and more.

Reduced healthcare costs

With a focus on preventative care, a wellness program can lead to significant long-term savings in healthcare costs. LSAs encourage employees to prioritize their health and well-being by covering expenses such as food purchase,, yoga and fitness classes. In this way, companies can avoid costly employee health issues and potential legal liabilities in the future.

Increased productivity

As long as our program addresses factors contributing to absenteeism, disengagement, and low productivity, the overall work environment can improve. When employees feel supported and are given the freedom to choose benefits that suit their needs, they are more likely to be happier, more engaged, and more productive.


Employers have complete discretion over eligible expenses, which simplifies the process and reduces administrative burdens. By making sure their LSA plan is compliant, employers can offer flexible benefits without the fear of legal or financial complications.


Edenred LSA: your trusted partner for a happier and healthier workforce

Diversity of employee profiles

Variety of eligible expenses and experiences

Flexibility in different work models

Edenred LSA program differentials

Our program is designed to meet the needs of employers and employees alike. Here are some differentials that set us apart.

Customizable program option

We offer customizable options and comprehensive support to help you implement a wellness program. If you’re unsure how to make it happen, our team is here to guide you through the process while maintaining affordability for your business.

Simplified eligible expenses

Our extensive list of eligible expenses covers various categories, guaranteeing that employees can choose the benefits that best suit their needs:

Restaurants and Groceries – Food, drink, and supplies at restaurants and grocery stores.

Active Lifestyle – Campgrounds, hobbies, and music.

Entertainment –
Tickets to entertainment, attractions, movies, video games, and amusement parks.

Transportation and Mobility – Bus, rail, ferry, tolls, taxi, rideshare, bicycle, and EV charging.

Family and Personal Needs – Family counseling, financial, legal, tax, veterinary, pet store, school, and child-care.

For the Home –
Apparel, shoes, furniture, and home office supplies.

Home Improvement –
Home repair, contractors, and appliance repair.

Travel –
Airline tickets, car rental, and miscellaneous travel expenses.

Because of our wide variety of choices, our LSA program allows employees to choose benefits that are truly aligned with their interests and lifestyles, ultimately resulting in greater satisfaction and wellness.

Digital platform

To provide a seamless experience for employees and employers alike, a user-friendly digital platform supports our wellness program. This resource allows for easy access to account dashboard, card balance, submission of receipts, and tracking of reimbursements at any time and from anywhere.

Easy administration

We know that streamlining processes is key to your business. That’s why our LSA offers more than just reimbursement. Uniquely, we combine prepaid cards with an automated reimbursement process. Using AI and machine learning, every receipt is reviewed, business rules are applied, and decisions are made. It’s a breeze for your HR department. Just submit your receipts through our app or website, and our tech will take over.

Comprehensive communication and education

Ensuring our clients understand their benefits is crucial to Edenred experience. To achieve this, we use a combination of:

Monthly engagement campaigns: These campaigns are designed to keep our users actively involved with our LSA program.

Transactional emails: Regular updates on account setup, card usage, and reimbursement status ensure our users are always informed.

How-to guides: We offer practical guides that help our users make the most of our LSA program.

Dedicated support team: Our customer support team is available to answer any questions or concerns employees may have about the program, guaranteeing they receive the assistance they need.

Customer and compliance support

We pride ourselves on providing top-notch customer support through our customer channels. Whenever you have questions or need guidance  we are always available to help.

Features that work for you and your team

Spending Controls

Take control of how your employees use their well-being funds by setting spending controls. Establish geo-restrictions, eligible days, and spending limits to protect responsible spending.

Benefits Card

With our multi-benefit card, your employees can easily spend  their LSA funds. You can choose whether to load funds monthly, quarterly or early, providing added flexibility.

Employee Discounts

In addition to LSA funds, our program offers employee discounts. We’re always adding new partners to our catalog, making sure our participants get the most out of their benefits.

Lifestyle Spending Accounts: The modern benefit solution for your employees

Elevate your organization’s value proposition with our innovative Lifestyle Spending Account program, designed to attract top talent and enhance employee well-being.

Ready to see what we can do? Schedule a free demo. 

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