A Taxable Spending Account (TSA), also referred to as a lifestyle spending account, is an effective solution for enhancing your core group benefit plan. A TSA functions as a personal health and wellness account for plan members, serving to attract top talent by offering coverage for services not normally covered under a standard group benefits plan.
Simply put, a TSA reimburses (on a taxable basis to the employee) expenses related to healthy living and lifestyle choices. An employer sponsors the account and holds funds allocated to employees and TSA paid claims are added to the taxable income of plan members.
The idea is to promote health and lifestyle for all your plan members. Studies have consistently shown that employees involved in health and wellness programs report higher job satisfaction levels and contribute more to the overall bottom line. Your business could be a contributing factor to the overall health of an employee, which most would agree is more valuable than the numbers on their pay cheque. DENT offers flexible TSA solutions that can be customized to suit your business needs.
Lifestyle Spending Account Examples
• Health & Fitness Related (Fitness Equipment, Apparel, Vitamins, Supplements etc.)
• Family & Lifestyle (Green Living, Transportation, Elder Care, Infant Care, Pet Care etc.)
• Technology Related (Computer, Mobile Devices, Electronics)
• Personal (Education, Spa Services, Cosmetic Procedures, Family Leisure)
• Special (Pay all receipts as submitted – no rejections)
These are just a few of the many options available to you, we recommend choosing health and wellness services that reinforce the core values of your business. For more on this subject we recommend you read our article on how to synchronize your corporate culture and employee benefits strategy.
An effective and comprehensive lifestyle spending account is not only an effective means of attracting top talent, but it is also essential to promoting good health for your existing workforce.
You can’t force employees to make healthier choices, however, by showing that your company is actively committed to the health and wellness of its employees, you will set your business apart from competitors that are solely concerned about the bottom line.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.