LSA Eligibility for Co-Working Space Social Memberships

Co-working memberships that give remote employees a place to work around other people.

Part of our series on Lifestyle Spending Account eligibility. This is general information, not tax, legal, or benefits advice. What's eligible depends on your employer's program and local rules. Ask us how this works for your team.

LSA for Social Well-Being

A co-working social membership is less about the desk and more about the people around it: the lunch-and-learns, member happy hours, running clubs and shared kitchens that come with many spaces. For remote employees, it's often the only place they see the same faces each week. Employers include these memberships to give distributed teams a regular place to be around others.

Who benefits from a co-working community

Fully remote employees in cities where their company has no office are the core audience, and many describe going weeks without a casual conversation that isn't on a video call. New hires who relocated for a remote job use member events to meet people in a town where they don't know anyone. Parents working from home sometimes use a few days a month to get out of the house and around other adults, which a lounge-level membership suits well. Many employers pair it with broader programs, such as employee resource groups.

Co-working costs that fit a social wellbeing category

Plans that include this category usually aim at community access rather than a full-time office. Examples:

  • Community or lounge-level memberships at co-working spaces
  • Day pass bundles that include member events
  • Tickets to member speaker series and skill-share nights
  • Membership in co-working hobby clubs or run groups
  • Guest passes to bring a friend to member events
  • Part-time memberships limited to a few days a month

This category is one of many; our overview of LSA eligible expenses covers the rest.

How employers limit co-working memberships

  • Dedicated desks and private offices are often handled through a remote work or workspace policy instead, since they're closer to a business expense.
  • Meeting room charges, printing and mail handling are commonly excluded from social categories.
  • Some employers only approve memberships near the employee's home, not in cities they're visiting.
  • Where the company already has an office nearby, an employer may limit this category to employees without that option.
  • Food and drinks bought on site are usually treated like any other dining expense under the plan.

Structuring a co-working social membership benefit

Decide social versus work

Choose whether this lives in the LSA as a social benefit or in a remote work policy as a workspace expense. Splitting by membership type, with social tiers in the LSA and desks in the work policy, is a common approach.

Favor flexible tiers

Lounge and part-time memberships usually cost much less than a dedicated desk and match what most employees want from the social side.

Check local options

Smaller cities may have independent spaces rather than national chains. Wording the category around the type of membership, not specific brands, keeps it usable everywhere.

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Frequently asked questions

Can I use an LSA for a co-working space membership?

Many employers allow community or part-time memberships, especially for remote staff. Dedicated desks are sometimes handled through a separate workspace policy instead. Your plan will say which tiers qualify.

Why wouldn't my employer just treat co-working as a work expense?

Some do, and that can change how it's taxed. Others put it in the LSA to give employees more choice and treat it as a social benefit. It comes down to the company's own policies.

Can I buy day passes instead of a monthly membership?

Often, yes. Day pass bundles are a common option for people who only want a couple of visits a month.

Are events at a co-working space covered if I'm not a member?

Paid tickets to public events may qualify under a social or learning category, depending on your plan. Keep a receipt showing the event name and date.

Tax treatment depends on the plan and location; our guide explains how LSA reimbursements are taxed.

This content is general information, not medical, legal, tax, or financial advice. Employer plan terms determine eligibility, and requirements may vary by location.

These statements are intended as guidance but are not regionally reviewed for compliance in varying circumstances. Please consult your HR or financial teams to address specific eligibility questions.

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