1.How clearly defined is the strategic purpose of your LSA program — wellness, work-from-home support, professional development, or broad lifestyle?
LSAs are post-tax employer-funded accounts. The eligible expense list defines the program's purpose and workforce impact.
2.How well does your LSA annual funding amount ($500–$2,000 typical) reflect your total rewards strategy and budget?
LSA amounts vary widely. $500–$1,000 is common for wellness-focused programs; $1,500–$2,000 for broad lifestyle programs.
3.How well does your LSA eligible expense list reflect the actual needs and preferences of your workforce?
Common categories: fitness, mental health, financial wellness, home office, professional development, childcare, pet care. Employee surveys drive relevance.
4.How thoroughly have you reviewed the tax treatment of LSA reimbursements and communicated the post-tax nature to employees?
LSA reimbursements are taxable income to employees (unlike FSAs). W-2 reporting is required. Employees should understand the net value.
5.How well do you track LSA utilization and use the data to refine the eligible expense list and funding level?
Annual utilization analysis by expense category is the benchmark. Low utilization in a category suggests poor communication or low relevance.
This tool provides educational decision support only. Results are not legal, tax, actuarial, or insurance advice. Validate all outputs against current plan documents, applicable law, and qualified professional guidance. Scoring version 1.0 · Reference year 2026.
