Offering fitness memberships is a great way to promote employee health at a discounted membership rate.
Through Justworks you are able to offer access to both Town Sports International (operating under the names New York Sports Club, Boston Sports Club, Philadelphia Sports Club, and Washington Sports Club), and ClassPass.
Availabilities of membership are based on where your employee lives. Once you decide to offer a fitness membership through Justworks, your employees can choose how to allocate your contribution to the fitness memberships that best suit them. That means your employees can sign up for any and all memberships you offer, with your contribution going to ClassPass first (if applicable), then to any other gym membership.
Amount Allowed for Subsidy
As an employer, you may choose to elect the following amounts as the fitness allowance for each employee:
*Please keep in mind, you will need to elect a minimum allowance amount of $15 to unlock ClassPass. Our other discounted gym memberships can be offered at a $0 contribution for employees located in the greater Boston, D.C., Philadelphia and New York Metropolitan areas.
You will also be able to make changes to your elected amount and eligibility directly in the Benefits Center. Please note that changes to the amount you contribute are only made effective the first of the following month.
These amounts are the maximum you would contribute to an employee’s gym membership(s). If the employee’s gym membership is lesser than the amount of allowance, you will only be charged the amount of the membership and not the full subsidy amount you elected.
Making Changed to Your Fitness Plan
You can also make changes to your fitness offering directly in the Benefits Center by clicking on the “Manage” button on the fitness offering card. Please note that all changes you make will be effective the first of the following month - you will not be able to make changes to be effective on the same day or retroactively.
If you wish to make changes to your Fitness Plan effective immediately, please reach out to our support team.
We will only be able to make changes to the plan effective immediately if changes meet the following criteria:
- it is a brand new offering,
- you reached out to our support team the same day you completed the fitness offering flow, and
- no employees are yet enrolled in any offerings under your fitness plan.
Changes in Contribution Amounts
Increasing the contribution amount
If you increase your contribution amount from $0 to an amount greater than or equal to $15, you will automatically unlock ClassPass for your employees. The higher the contribution you elect to offer, the higher a discount your employees will receive for ClassPass.
If some of your employees are already enrolled in gym memberships, they will see their out of pocket costs decrease based on the new amount you chose to contribute.
Please keep in mind that your contributions will be applied to an employee’s ClassPass membership first, then any remaining amount will be applied to any additional gym membership(s) they might be enrolled in.
The increase in the contribution amount will not impact your employees’ active gym memberships (TSI) at the time of change aside from potentially reducing the amount your employee is responsible for.
Decreasing the contribution amount
If you decrease your contribution amount to $0, any of your employees who is enrolled in ClassPass will lose their memberships through the discounted rates. They will be able to keep their membership active under ClassPass’ regular membership rates.
The decrease in the contribution amount will not impact your employees’ active gym memberships (TSI) at the time of change aside from potentially increasing the amount your employee is responsible for.
How do allowances work?
Here are some examples that demonstrate how the fitness allowance model functions.
Employees With One Membership
In this scenario, the employer is contributing $100 towards fitness and the employee has elected a ClassPass membership.
Fitness contribution: $100
Employee’s ClassPass membership cost: $64
Amount employer will be charged: $64
Amount left over in allowance: $36*
Amount charged to employee: $0
*This amount will not be charged against the company nor paid out to the employee. The employee, however, will have access to this allowance to put towards another gym membership if one is available in their location.
Employees With Multiple Memberships
In this scenario, the employer is contributing $100 towards fitness and the employee has elected ClassPass and New York Sports Club (passport) memberships.
Fitness allowance: $100
Employee’s ClassPass membership cost: $64
Employee’s NYSC membership cost: $59.99
Total amount for membership cost: $123.99
Amount employer will be charged: $100
Amount left over in allowance: $0
Amount charged to employee: $23.99
When will we be billed?
The contributions will be shown on the second semi-monthly invoice of each month. The charges will appear under the Justworks fee section.
Employees who elect ClassPass memberships will be billed on the credit card they provide to ClassPass when signing up. They will also see your portion of the fitness contribution added to their income subject to paid-in-kind taxes.
All other gym memberships will be billed directly against their paycheck as an after-tax deduction.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.