As you’ve guessed by now, here at Blendable we’re huge advocates for staying healthy (our president races Ironmans for crying out loud). And you've likely heard the benefits of staying healthy too. Maintaining a healthy lifestyle can:
- Improve sleep quality
- Increase energy levels
- Create a sharper focus
- Increase your overall happiness
What might slip your mind, however, is that maintaining health increases productivity at home and in the workplace.
One of the ways to support your team's healthy lifestyles and improve productivity is by offering a Wellness Spending Account.
What is a Wellness Spending Account?
A Wellness Spending Account (WSA for short) is similar to a Health Spending Account (HSA). The plan sponsor contributes funds to plan member accounts. Plan members use these funds to reimburse eligible expenses.
The difference is what’s eligible, and what's taxable.
What can you claim using a Wellness Spending Account?
Instead of covering only medical expenses, like an HSA, funds a WSA can be used for lifestyle expenses. Lifestyle expenses include things like:
- Gym Memberships
- Smoking Cessation Programs
- Life Coaching
- And many more! Get in touch with our team to hear a more comprehensive list!
How are Wellness Spending Accounts taxed?
Because the funds in a WSA can be used for all sorts of lifestyle expenses they’re a taxable benefit for plan members. This is the other big difference between WSAs and HSAs – fewer limitations on how plan members spend the funds, but less favourable tax treatment.
If you are considering a WSA, talk to your tax professional about how it will affect your organization’s taxes and the impact on compensation for your plan members.
What are the benefits of a Wellness Spending Account?
Not only does a WSA provide similar benefits to an HSA such as flexibility and cost control, but it also provides an opportunity to increase productivity among your team. According to the CDC, healthier employees lead to higher productivity because:
- Employees are less likely to call in sick
- Health has a direct impact on behaviour (healthier lifestyles often lead to higher energy levels, and better sleep which has a direct correlation to one’s mood) and behaviour has a direct impact on productivity (a person's mood going into a workday determines how they perform. With a happier and motivated team, more work tends to get done.)
- Healthier lifestyles lead to more time spent with family
There are many other benefits of course, such as improving your team’s work-life balance or increasing how competitive you are as an employer in the job market.
To summarize, you’ll save money, give your team the autonomy they want when it comes to benefits, AND increase morale and productivity. Pretty sweet right?
This isn’t one of those too good to be true situations
These benefits are very much attainable and easy to implement! Just get in touch with our team and we’ll help you kickstart your team’s wellness journey!
