Corporations can expense gym memberships as a deduction on Form 1120.Įmployers who offer on-site gyms, or on-site fitness centers can see additional tax incentives.Partnerships or multiple member LLCs can use Form 1065 to claim these expenses.Sole proprietors, or single-member LLCs can deduct gym memberships on Schedule C under the “Expenses” section.However, corporate gym memberships are generally a tax deductible benefit, and companies can claim them as expenses. Please consult with your accountant before actually offering corporate gym memberships. Are corporate gym memberships a taxable benefit? In addition, as you start to see a high utilization rate, your employees will reduce their health risk factors, which will in turn reduce company insurance premiums. This way employers can offer employees a popular corporate wellness benefit, without having to foot the full cost of it. Also your employees may end up forming friendships with their peers who enjoy the same types of fitness activities, that they can take advantage of through your corporate gym membership program.Ĭorporate gym memberships can often be written off, for tax purposes (but more on this later). Generally companies see retention soar when employees feel cared for. Improve Employee Morale & Team CamaraderieĪs an employer, if you show your employees that you care about their mental and physical wellbeing through a corporate gym membership program, you are showing them that you care about them as a person. ![]() Some insurance companies offer their own wellness reimbursement program as well, such as the Cigna gym reimbursement program, humana wellness program, or the Go365 program by Humana. Employers who are able to motivate their employees to be healthier will decrease health risk factors, and may even see reduced insurance costs. Also, having healthier employees also prevents disease, or spread of illness. Healthier people are generally happier, so when an employer rallies employees around this shared theme, it improves the energy and overall culture of a workplace. ![]() Promotes a Workplace Culture that prioritizes Health and Corporate Wellness.Here are some common reasons why companies offer gym memberships: Healthy lifestyles are becoming increasingly mainstream, and employers that tap into this trend are able to build a strong employer brand. Why do companies offer gym memberships?Ĭompanies that offer gym memberships usually do so to promote healthy behaviors, while using this employee benefit as a recruitment and retention tool as well. We will discuss the reason behind these stark statistics later on in this post, and how you can counter it, so that you see maximum utility and utilization for your employees. Also 24% of corporate gym memberships were never used. However, corporate gym memberships that are set up in this manner are not always the most effective.Īccording to DataHub, corporate gym memberships made up just 2% of all gym memberships out of a cohort of 270,000 gym memberships. Employees are then able to take advantage of discounted rates, at selected gyms. Typically employers will strike a partnership with a local fitness facility in order to offer their employees a discounted rate, or they will tap into a gym network. Some employers also go one step further, by allowing their employees to join any wellness related facility (think Yoga, Pilates, etc.,). Smaller employers simply offer employee gym memberships as a reimbursement. How to implement a corporate gym membership program?Ĭorporate gym memberships are essentially subsidized reimbursements, or stipends that employers offer to their employees, so that they can enroll at a gym or fitness facility.Are GymPass, ClassPass and similar platforms effective?. ![]() How much does a company pay for Gympass, ClassPass, and similar platforms?.Should employers offer gym memberships?.What if our workplace has their own gym?.Are corporate gym memberships a taxable benefit?.Why do companies offer gym memberships?.Read on to learn more about this topic! Click on the sections below to jump right to your specific question. That being said, we’ll dive deep into this employee benefit, so that you have all of the information that you need in order to implement a corporate gym membership program at your company! It’s also a key company perk that helps employers be proactive in improving their population health, as they say prevention is better than the cure. Corporate gym memberships are a great fringe benefit that employers offer to their employees in order to encourage a more healthy, and active workplace culture.
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