Social events are the dinners, game nights, meetups and outings where coworkers get to know each other as people. Employers include this category in an LSA so employees, especially on remote and hybrid teams, can take part in or organize the kind of get-togethers that build real working relationships, without waiting for the annual holiday party.
Social expenses an LSA might reimburse
This category usually covers an employee's own share of social activities. Examples plans often allow include:
- Your ticket for a coworker outing like bowling or trivia night
- Dues for an employee club, such as a book or hiking group
- Meals when meeting remote teammates in person
- Tickets to local community or professional meetups
- Supplies for a game night or potluck you host for colleagues
- Registration for an employee resource group event
To compare this with other popular categories, read our breakdown of LSA eligible expenses.
Building a social events category that gets used
Separate it from the events budget
Make clear that the LSA covers employee-chosen activities, while company-planned events stay in the team budget. This avoids double coverage and confusion about who pays.
Write an alcohol rule in plain language
Decide whether drinks are allowed, capped or excluded, and state it in one sentence. Social event claims generate more questions about alcohol than any other issue.
Make it easy to start something
Many employees would join a club or meetup but won't organize one. Covering small hosting costs and club dues gives the people willing to organize a reason to do it, and others follow.
How social events differ from company-run events
- Company-hosted parties and offsites are usually paid from an event or team budget, not individual LSAs.
- Alcohol is excluded by many plans, or allowed only as part of a meal receipt.
- Plans may ask that the event be social in nature rather than a client or sales meeting, which belongs in business expenses.
- Paying for other people's tickets is often limited, since the account is meant for the employee's own participation.
- Gifts for coworkers, such as birthday presents, usually fall under recognition or gifting rather than social events.
Employees who use social event funds
Remote employees are the clearest fit, since they miss the casual lunches and after-work plans that happen in an office. New hires use the category to meet their team in a relaxed setting. Employees in regional hubs with only a few colleagues nearby can organize small meetups on their own schedule. It also helps people who want to be social but hesitate to spend on a group outing when money is tight, which can leave them out of the moments that build trust. Many employers pair it with broader programs, such as employee resource groups.
Frequently asked questions
Can an LSA pay for social events with coworkers?
Some employers include a social wellbeing category that covers an employee's own share of outings, meetups and club dues. It depends on the plan, and company-hosted events are usually paid separately.
Can I use my LSA to host a team dinner?
Plans vary. Many limit reimbursement to your own share, while some allow hosting supplies for a small gathering. Check if your plan covers other people's costs.
Are drinks at a social event covered?
Many plans exclude alcohol or only allow it as part of a meal. Your plan's rules decide. If a meal includes drinks, some plans reimburse only the food portion.
Does this category cover non-work social activities?
Some plans define social wellbeing broadly to include community groups and meetups outside work. Others keep it focused on connecting with colleagues.
LSA funds are generally treated as taxable income. Learn more about 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.
