Fidelis Gym Reimbursem*nt (2024)

FAQs

How to reimburse employees for gym membership? ›

Unless, it's of Little Value

The reimbursem*nt will also be viewed as a cash or cash equivalent, which is always taxable income to the recipient.

Related links to masshealth member forms

To celebrate all you do, we've put together up to $300 in fitness and weight loss reimbursem*nts.

A wellness reimbursem*nt program is a type of employee benefits program that allows employees to be reimbursed for eligible health and wellness expenses. This program can cover a wide range of expenses, such as gym memberships, wellness classes, exercise equipment, and even meditation apps.

As a general rule, wellness benefits like employer-paid gym memberships are subject to the same federal tax rules as any other employee rewards or prizes. That is, they are generally not tax-deductible.

If a reimbursem*nt plan is deemed accountable, the reimbursem*nts are not considered taxable income to the employee. However, if a reimbursem*nt plan is deemed as nonaccountable, the reimbursem*nts are considered taxable income, and the employer is required to report it on the employee's W-2 form.

Medical Expense Tax Credit

In some cases, if a gym membership is prescribed by a doctor for a specific health condition that can be improved through physical exercise, it might be considered a medical expense. If this is the case, you could potentially claim it under the Medical Expense Tax Credit.

In general, gym memberships are not deductible as a business expense on your personal tax return. According to the IRS, expenses for general health and wellness, to maintain one's general health, such as gym memberships or fitness classes, are not deductible.

Your costs in Original Medicare

You pay 100% for non-covered services, including gym memberships and fitness programs.

Gym membership costs are qualified medical expenses only if the gym is for the sole purpose of: 1) affecting a structure or function of the body, such as part of a prescribed plan for physical therapy to treat an injury or 2) treating a specific disease diagnosed by a physician such as obesity, hypertension or heart ...

Does health insurance cover going to the gym? ›

The bottom line

Most commercial health insurance plans offer fitness incentive programs, and those perks sometimes include free gym membership. If your plan won't fully reimburse your membership, you may still be able to get a low-cost or discounted gym membership or other fitness benefits.

If your job requires you to maintain a certain level of physical fitness, you may be able to claim your gym membership fees as a tax deduction. Many professions such as emergency services workers, athletes, and personal trainers have fitness standards that must be met as part of their job.

To be considered a tax-deductible expense, the gym membership must be deemed necessary and directly related to the performance of employment duties or business activities.

HCPCS Code for Health club membership, annual S9970.

As you can see pretty quickly, most gyms and fitness businesses across the country qualify for the Employee Retention Credit, and are eligible to receive big money from government stimulus this year.