Using an LSA for Virtual Team-Building Experiences

Online games, workshops, and virtual events that help distributed teams connect.

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

Virtual team-building experiences are hosted online activities, such as escape rooms, trivia, cooking classes and mystery games, that give distributed coworkers something to do together besides a status meeting. Some employers let employees use a Lifestyle Spending Account (LSA) to join these sessions, which gives remote and hybrid teams a way to connect without waiting for a central events budget.

Examples of virtual team activities an LSA might fund

Here the LSA usually pays for one person's ticket or seat, or for a kit shipped to that employee's home.

  • Tickets to hosted online escape rooms or puzzle hunts
  • Live virtual cooking classes with ingredient kits
  • Remote trivia or game show sessions run by a professional host
  • Craft or art workshops with materials mailed to each participant
  • Online improv sessions built around collaboration and quick thinking
  • Virtual volunteer events that charge a participation fee

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

Setting rules for employee-led team events

Clarify who pays for group bookings

Decide whether one employee can book a session for colleagues and claim it, or whether each person claims their own seat. Individual seats are simpler to review and keep one person from spending their allowance on everyone.

Account for global teams

Ingredient and craft kits don't always ship internationally, and prices vary by country. Allowing local substitutes or a digital-only option keeps employees outside the host country from being left out.

Cap spending per event

Hosted experiences range from an inexpensive trivia ticket to a premium class with a shipped kit. A per-event limit lets employees try several sessions over the year instead of one costly one.

When a team event belongs in another budget

  • Events a manager books for the whole team are often paid from a team or culture budget rather than each person's LSA.
  • Alcohol in a mixology kit is commonly excluded, even when the class itself is allowed.
  • Many plans exclude general video game purchases and in-game currency, even if coworkers play together.
  • Leadership training delivered as a game may be treated as professional development instead.

Teams that get the most from virtual experiences

Fully remote teams spread across time zones use these sessions to meet people they only know as a name in chat. Hybrid employees who miss office events because of where they live get a way to take part. Employee resource groups and new-hire cohorts often organize their own sessions, and small regional teams use them when there's no travel budget. For people who dread happy hours, an activity with a shared task can feel easier than open-ended small talk. It also fits naturally alongside employee resource groups.

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Frequently asked questions

Can I use my LSA for a virtual team-building experience?

Some employers allow it, usually under social wellbeing, but many pay for team events from a separate department budget. Check your plan before booking, especially if you're organizing for a group.

Can I pay for my whole team's online escape room and get reimbursed?

Most plans expect each employee to claim only their own expenses. If you want to host coworkers, ask your manager whether a team budget covers it.

Are cocktail kits for virtual mixology classes covered?

The class fee is often allowed, but alcohol is frequently excluded. Many hosts offer a non-alcoholic kit, which is usually easier to claim.

Does a virtual game night with friends outside work count?

It depends on how your employer defines the category. Some limit it to activities with coworkers, while others allow any hosted social experience.

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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