This glossary defines key terms in modern personal benefits, from LSAs and well-being stipends to tax-advantaged benefits. Discover essential concepts in total rewards strategies that support workplace well-being and financial flexibility.
General Lifestyle Benefit Terms
Employee Personal Benefits –The perks that make life easier, happier, and healthier—because work should support life, not the other way around.
Employee Reimbursement Stipends –Flexible employer-funded allowances that empower employees to get reimbursed for specific lifestyle expenses.
Employee Spending Accounts –Employer-funded accounts designed to support various lifestyle, well-being, or work-related expenses.
Employee Well-Being Benefits –Benefits that go beyond health insurance, supporting emotional, social, and financial well-being.
Employee Wellness Benefits –Perks that help employees stay active, manage stress, and lead healthier lives.
Employer-Funded Benefits –Programs and perks entirely paid for by the company—because investing in employees is investing in success.
Employer-Sponsored Benefits –Benefits where the employer takes the lead, but employees might share some of the costs.
Fitness Reimbursement –Get rewarded for working out and focusing on healthy habits! Employers reimburse employees for gym memberships, fitness classes, and more.
Flexible Benefits –A benefits menu that lets employees pick what fits their lifestyle—because one size never fits all.
Fringe Benefits –Those extra, often tax-advantaged perks that make a job even more rewarding (see: Lifestyle Benefits).
Gym Reimbursement –A company-funded boost to help employees stay active with gym memberships or classes.
Lifestyle Benefits –Benefits designed to support employees beyond healthcare—think wellness, financial support, family, and more.
Lifestyle Reimbursement –Flexible employer-paid programs that encourage employees to spend money on activities or items that enhance their lifestyle.
Lifestyle Reimbursement Accounts –Accounts designed to reimburse employees for qualifying lifestyle expenses.
Lifestyle Spending Accounts –A flexible, employer-funded benefit that empowers employees to choose what enhances their well-being and be reimbursed for eligible expenses.
Lifestyle Stipend –A set amount provided to employees to spend on lifestyle perks that matter to them.
Personal Benefits Stipend –An allowance that gives employees flexibility to invest in their well-being however they see fit.
Personal Spending Account –A customizable account employees can use for personal wellness, learning, or other employer-approved expenses.
Personalized Benefits –Benefits that adapt to employees' unique lifestyles and needs, rather than a one-size-fits-all approach.
Pillars of Well-Being (Physical, Emotional, Social, Financial) –The four key dimensions of total well-being that form the foundation of a healthy workforce.
Total Rewards Strategy –A holistic approach to compensation and benefits that supports financial security, well-being, recognition, and growth—driving employee engagement and loyalty.
Total Well-Being –A benefits philosophy that goes beyond healthcare, supporting employees' physical, mental, financial, and social well-being.
Well-Being Reimbursement –A broad wellness reimbursement program that covers mental, physical, and lifestyle well-being.
Wellness Benefits –Perks designed to help employees maintain a healthy mind and body.
Wellness Reimbursement –Employers cover the cost of wellness-related expenses after employees submit receipts.
Wellness Spending Account –A designated account for employees to submit expenses for reimbursement on wellness-related activities or objects.
Wellness Stipend –A set amount employees can spend on wellness-related activities or products.
LSA-Specific Terms
Employer-Funded vs. Employee-Funded Accounts -LSAs are fully employer-funded, unlike FSAs, which use employee pre-tax contributions.
Global Marketplace -A curated, globally available integrated platform, where employees can spend LSA funds without submitting for reimbursement, in local currency and local language.
Marketplace -A curated, integrated platform where employees can spend LSA funds without submitting for reimbursement.
Fund Disbursement -How LSA funds are allocated (e.g., monthly, quarterly, annually).
Spending Categories -Employer-defined areas like wellness, fitness, or learning where LSA funds can be used for eligible expenses.
Pre-Tax Benefits & FSAs
Commuter Benefit -Pre-tax funds for transit and parking expenses.
Limited Purpose Accounts -FSAs restricted to dental and vision expenses, often paired with HSAs.
Parking Benefit -A pre-tax perk covering parking costs for commuting employees.
Pre-Tax vs. Post-Tax Benefits -Pre-tax (FSAs, HSAs, commuter benefits) reduces taxable income; post-tax (LSAs) offers flexibility and is taxed as income.
Tax & Compliance Terms
EAP (Employee Assistance Program) -Employer-funded programs that provide confidential counseling and support services.
ERISA (Employee Retirement Income Security Act) -The federal law in the U.S. that governs many employer-sponsored benefits.
Imputed Income -The value of certain benefits that the IRS (U.S.) considers taxable, even if employees don't pay for them.
Non-Discrimination Testing (NDT) -Ensuring benefit plans are fair and don't favor highly compensated employees.
Qualified Transportation Fringe Benefits -Employer-sponsored, tax-advantaged commuter benefits for parking, transits, and rideshares.
Tax-Advantaged Accounts -Accounts that offer tax savings, like FSAs, HSAs, and commuter benefits.
Process & Administration
Adjudication -The review process for verifying and approving benefit claims.
Card-Based Spending vs. Reimbursement Model -Two ways employees can use benefits: swipe a pre-funded card or submit receipts for reimbursements.
LSA Debit Card -A company-funded benefits card employees can use to pay for eligible expenses in an integrated marketplace or for items of their choosing.
Conditional Approval -An expense is approved, but the employee must upload a receipt—if the purchase is found to be ineligible, the employee
Direct Deposit -Reimbursements are deposited straight into employees' bank accounts.
Marketplace -A curated selection of benefit options employees can access through their LSA in an integrated no-markup storefront.
Payment Card -A company-funded benefits card employees can use to pay for eligible expenses.
Payroll Reimbursement -A benefits reimbursement that gets added to an employee's paycheck.
Core Lifestyle Spending & Flexible Benefits Terms
Adoption Reimbursement -Employer support for adoption-related expenses, including legal fees, travel, and other expenses.
Adoption Wallet -A designated fund, sometimes a lifetime wallet, that employees can use to help with adoption costs.
Cafeteria Plan (Meal Plan) -A benefits plan that lets employees pick and choose from a menu of options.
Carry-Forward Policy -A plan that lets employees roll over unused benefits into the next period or benefits year.
Carry-Over Policy -Similar to carry-forward, but often capped at a specific amount.
Claim Deadline -The last date employees can submit expenses for reimbursement.
Claim Submission -The process of submitting receipts, or claims, to get reimbursed.
Dependent Care FSA (DCFSA) -A tax-advantaged account to help with daycare and elder care costs.
Eligible Expenses -Items or expenses employees can use their benefits funds for, as determined by employers in program eligibility. Note, lifestyle benefits are known for their flexible nature, and eligible expenses can change mid-plan year.
Elder Care Reimbursement -Employer support for caregiving expenses for aging family members or loved ones.
Emergency Savings Stipend -A company-funded contribution to employees' emergency savings.
Enrollment Period -The window when employees can sign up, or enroll, for benefits.
Family-Forming -Benefits supporting fertility, surrogacy, and adoption for all paths to parenthood.
Family Planning -Benefits that support contraception, reproductive health, and future family-forming choices.
Flexible Spending Account (FSA) -A tax-advantaged account for healthcare and dependent care expenses.
Grace Period -Extra time to use reimbursement funds before they expire.
Health Flexible Spending Account (Health FSA) -An FSA specifically for medical expenses.
Health Savings Account (HSA) -A tax-advantaged savings account for healthcare expenses.
Lifetime Wallet -A designated account where employees can accumulate and use funds for long-term well-being expenses, such as family-forming, continuing education, or retirement wellness.
Maximum Contribution -The most an employee or employer can put into a benefits account.
Medical Travel -Reimbursements for travel costs related to medical procedures.
Pet Care Reimbursement -Employer-covered expenses for pet wellness, including pet sitting, grooming, and more.
Plan Administrator -The individual or entity responsible for managing and overseeing benefits programs, ensuring compliance, processing claims, and facilitating employee access to benefits.
Pre-Tax Dollars -Money dedicated from an employee's paycheck before taxes are applied, reducing taxable income and increasing take-home pay when used for eligible benefits.
Professional Development Stipend -Funds for learning, training, and career growth.
Professional Development Reimbursement -Employer-funded benefits for eligible expenses related to professional certificates, courses, or knowledge-building.
Proof of Purchase -Documentation (such as receipt or invoice) required to validate an expense before an employee can receive reimbursement.
Reimbursement -The process of repaying employees for eligible expenses they have incurred, typically after submitting proof of purchase.
Student Loan Reimbursement -Employer contributions to help employees pay down student loan debt.
Surrogacy -Employer-supported benefits that help cover expenses related to gestational surrogacy, including medical, legal, and agency fees.
Transportation FSA -A tax-advantaged account that allows employees to set aside pre-tax dollars for eligible commuting expenses such as public transit, parking, and rideshares.
Use-It-or-Lose-It Rule -A regulation that applies to certain benefits accounts, such as FSAs, requiring employees to use funds within a specific timeframe or forfeit any remaining balance.
Wellness FSA -A tax-advantaged Flexible Spending Account that allows employees to set aside pre-tax dollars for eligible wellness-related expenses, such as fitness programs, mental health services, and alternative therapies.
Work-from-Home Benefits -Employer-provided stipends or reimbursements to support remote work expenses, such as home office equipment, internet, and wellness perks.
Work-from-Office Benefits -Benefits designed to enhance the in-office experience, such as commuter subsidies, meal stipends, or on-site wellness programs. Redemptions can be geo-tagged and limited to approved locations, ensuring reimbursements apply only to designated vendors or office-based services.
Tax Implications Terms
IRS Compliance -Adhering to regulations set by the IRS (U.S.) regarding tax-advantaged benefits, employer contributions, and reporting requirements.
Tax Benefits -Financial advantages, such as reduced taxable income or employer-provided tax-free reimbursements, that employees and employers receive from offering or using specific benefits.
Tax-Free Reimbursements -Employer-funded reimbursements for eligible expenses that are not considered taxable income to employees.
Tax Liabilities -The amount of tax owed by employees or employers on certain benefits, especially those considered taxable fringe benefits.
Tax Savings -Reductions in taxable income that employees and employers can achieve through pre-tax benefit programs.
Taxable Fringe Benefits -Perks or benefits provided by an employer that are considered part of an employee's taxable income, such as bonuses, certain reimbursements, or personal use of company resources.
Taxable Income -The total amount of income subject to taxation, including wages, salaries, and taxable benefits.
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