A wellness LSA is a post-tax employer benefit, and any funds the employee receives is taxable income.
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.
What this means
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.