Fitness Membership Offerings
If your employer opts to offer a fitness program through Justworks, you will be able to enroll in multiple different fitness memberships depending on your location. At Justworks we offer discounted rates at various Sports Clubs, New York Health & Racquet Club, and ClassPass. Availabilities of membership are based on where you live.
Signing-Up for Fitness Memberships
When your employer chooses to offer a fitness program through Justworks, you will have access to discounted membership prices offered through Justworks. Additionally, your employer may choose to provide a fitness allowance that will subsidize the already discounted membership prices offered through Justworks. You then choose how to use your contribution on the fitness memberships that best suit you!
If your employer is contributing enough to cover multiple memberships, you can sign up for more than one! Availability of multiple memberships is based on your location. Please note that if you elect ClassPass, your contribution will go there first and any remaining amount can be used towards other gym memberships.
How do I add dependents to my membership?
With the exception of ClassPass, you may add a spouse/partner or dependent on your gym membership. You can do so directly through Justworks. Please keep in mind that while the employer contributions do not count toward additional memberships, dependent membership will be charged at the Justworks discounted rate.
The portion of your ClassPass membership not covered by your employer will be billed on the credit card you provide to ClassPass when you sign up. The price you see when signing up for ClassPass is the cost to you each month. Any additional fees for ClassPass will be charged to your credit card.
Other Gym Memberships
All other gym memberships will be billed directly against your paycheck as an after-tax deduction.
Paid In Kind Taxes
In accordance with the IRS Publication 12b, any employer contribution to a gym membership will need to be recorded as income for tax purposes.
If you are enrolled in a gym membership and your employer provides a contribution amount, you will see your employer’s portion of the fitness contribution added to your pay statement as income subject to paid-in-kind taxes. These amounts will show under your Earnings section in your pay statement with a “(paid in kind)” tag. The same amount will also show under the After-tax deductions section.
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.