A lifestyle spending account is a post-tax employer benefit, and any funds received by the employee are considered taxable income.
Also Known As 💡
Lifestyle spending accounts can also be known by other names, like wellness programs or remote work stipends.
What does that mean for you?
Since the funds received are included in your paycheck, they are considered part of your take-home pay. You should see the benefit itemized on your payroll stub with the applicable taxes withheld.
Informational Purposes Only
The following content has been prepared for informational purposes only, and should not be relied on for tax, legal, or accounting advice. Consult with a tax professional for your own reporting purposes.