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What is a Personal Spending Account?
Personal Spending Accounts (PSA), also known as Wellness Spending Accounts (WSA), are recent additions to a benefits plan, focusing on well-being support for employees. Employers allocate a set amount of money to each employee to use on eligible services. PSA are a taxable benefit to the employee.
List of PSA Examples and Eligible Expenses
It’s important to remember that it is ultimately the employer who determines what is eligible, and plan members looking to make claims should confirm their individual coverage. Some common eligible expenses of PSA that might interest you:
- Fitness expenses, like gym membership fees or equipment costs.
- Education and/or personal and professional development, such as online courses and workshops.
- Hobbies expenses, whether that be the purchase of a new golf club or some new plants and racks.
- Childcare expenses, such as daycare services or summer camps.
- Eldercare expenses, such as companionship services or certain activities.
- Alternative transportation, including bus passes, bicycles, etc.
In today's competitive business landscape, Small and Medium Enterprises (SMEs) face numerous challenges in attracting and retaining top talent while managing costs effectively. As SMEs strive to differentiate themselves and create an attractive workplace environment, innovative employee benefits solutions become increasingly important. One such solution that has been gaining traction is spending accounts. Let's explore how spending accounts can benefit SMEs and empower them to thrive in the modern business world.
