Using an LSA for Remote Employee Engagement Programs

Co-working passes, virtual events, and home-office support that help remote employees stay connected.

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

Remote employee engagement programs are the activities and spaces that keep people who work from home in regular contact with coworkers and with other people generally, from coworking memberships to online interest communities and local meetups. Employers include them in a Lifestyle Spending Account (LSA) because isolation is a common complaint about fully remote work, and people solve it in very different ways.

Remote connection expenses an LSA may cover

Because remote employees vary so much, plans that include this category tend to allow a mix of in-person and online options.

  • Coworking space memberships or day passes near home
  • Virtual coworking sessions with scheduled focus blocks and breaks
  • Paid online communities for remote workers in the same field
  • Registration for local professional meetups or interest groups
  • Workshops on staying connected and keeping boundaries while remote
  • Hobby clubs or classes that add regular social contact to the week

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

Designing for employees who work remotely

Allow in-person and online options

Some remote workers want a desk among other people, while others prefer a virtual community. A category broad enough for both gets more use than one limited to either.

Separate business costs from wellbeing costs

Draw a clear line between tools the job requires and activities that help employees feel connected. That keeps LSA funds from replacing equipment or travel the company should pay for.

Adjust for global remote staff

Coworking prices and availability differ widely by city and country. Allowances in local currency or with regional adjustments give employees in different places similar value.

Engagement costs that often need a different budget

  • Travel to company offsites or headquarters is usually a business expense reimbursed under the travel policy, not the LSA.
  • Collaboration software the job requires, such as project or chat tools, is typically a company cost rather than a personal wellbeing expense.
  • Home office furniture and equipment may belong to a separate home office stipend or category.
  • Some employers set a monthly coworking limit so one membership doesn't use the full allowance.

Remote employees who use connection benefits

Employees who live far from any office, sometimes as the only person from their company in their state or country, use coworking and local groups to see other people during the week. New hires who joined remotely and have never met their team in person often look for structured ways to build relationships. People who live alone, those who relocated for family reasons, and parents who want to work somewhere other than the kitchen table also get a lot out of these options. Many employers pair it with broader programs, such as holistic employee wellbeing.

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Frequently asked questions

Can I use my LSA for remote employee engagement programs?

Many employers allow coworking, online communities and social programs for remote staff, but it depends on your plan. Check whether coworking sits in this category or under a home office or professional development budget.

Will my LSA pay for a coworking membership?

Coworking is a common LSA expense for remote employees, often with a monthly or annual limit. Keep the invoice showing the membership period and the cost.

Can I claim travel to meet my team in person?

Travel for company events is usually a business expense reimbursed through your employer's travel policy. Personal trips to meet coworkers socially depend on your plan and are often excluded.

Is a paid online community for remote workers eligible?

Often, if your plan includes social or emotional wellbeing categories. Membership fees for moderated communities are typically easier to claim than general social media subscriptions.

Because LSAs are post-tax benefits, reimbursements are usually taxable. Read more on 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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