Fitness

Fitness Memberships

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 fitness memberships to your employees at ClassPass, Sports Clubs, and New York Health & Racquet Club.

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:

• $0*
• $15
• $30
• $45
• $60
• $80
• $100 

*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.

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 a 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 a fitness and the employee has elected ClassPass and New York Health & Racquet Club memberships.

Fitness allowance: $100

Employee’s ClassPass membership cost: $64

Employee’s NYHRC membership cost: $80

Total amount for membership cost: $144

Amount employer will be charged: $100

Amount left over in allowance: $0

Amount charged to employee: $44

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.

Employee Billing

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. 

Disclaimer

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.