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rd_sutton · Aug 24, 2005, 03:25 PM

Question - I am an s-corp and would like to offer free gym membership to my employees as an employee benefit. How would that be classified on my books and what would the tax implication of that be?? Is that taxable income to my employees?

Thank you for your advice.

fredg · Aug 25, 2005, 05:49 AM

Hi,
The best advice I can offer is to ask you a question; Do you have a CPA??
If not, you really need an accountant, a CPA, to get information, and also to do your taxes, either company, corporation, or whatever.
Unless you are a tax expert, get one.
Best of luck,
fredg

AtlantaTaxExpert · Aug 25, 2005, 07:37 AM

Rd_sutton:

I endorse what FredG has said: you need to get expert tax help for your S-Corp. Such tax preparation requires a professional help who has experience with Sub-Chapter S corporations. It is not something that an amateur or even a less-than-fully-qualified tax professional can prepare. A CPA is a good choice, but you might find that an enrolled agent can do the job just as well for a lot less in fees.

That said, I believe that a free gym membership is a fringe benefit that you can offer to your employees that would not be taxable to them as income.