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What is a WSA (Wellness Spending Account)?
What is a WSA (Wellness Spending Account)?
Danielle Constantine avatar
Written by Danielle Constantine
Updated over a week ago

What is a WSA Plan?

A Wellness Spending Account (WSA) is a flexible benefit offered by employers to promote healthier lifestyles and employee satisfaction. This type of plan is part of an employer’s overall benefits package, where employees can use allocated funds to cover a variety of wellness-related expenses that they find personally valuable. Unlike traditional health plans, a WSA plan is customizable, giving employers the freedom to select eligible items and activities they feel align with their team's wellness needs. That's right - the employer can pick whatever they want to add to the WSA list of covered items!

It's a Taxable Benefit

It’s essential to note that a WSA is a taxable benefit, meaning the funds employees spend from this account are treated like additional income and taxed accordingly. Because it’s taxable, a WSA offers broad flexibility, allowing employees to use it on an extensive range of wellness items, from gym memberships to financial advisor fees, vitamins, electronics, utility bills, cosmetic treatments, personal training, daycare services, and way more (too many possibilities to list)! The only limits are those set by the employer, which means a WSA plan can be as creative and encompassing as needed.

It Gives you that Competitive Edge

In today’s competitive job market, offering a WSA plan would set your company apart. It provides employees with more than just traditional health benefits, showing that your company values their holistic well-being and work-life balance. Studies have shown that wellness programs can lead to increased productivity, reduced absenteeism, and higher overall employee satisfaction, contributing to a healthier, more motivated workforce. By implementing a WSA, you’re investing in the well-being and happiness of your employees, making your compensation package more attractive.

I Want One! What are My Next Steps?

If you’re interested in learning more about implementing a WSA plan, whether as a stand-alone myWSA or as part of a more comprehensive myFlexplan, reach out to your advisor. They can help you explore options that best suit your team’s needs and budget, ensuring a smooth integration into your current benefits offerings.

Don't have an advisor, or don't know their contact information? Reach out to us at support@getmyhsa.com and we'd be happy to help!

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