Company Paid Gym Membership - Fringe Benefit to Employee

Hello there, @Merideth.

You can create an additional pay type for the employee's gym membership. Also, the payment type you choose will determine how the benefit is taxed. Let me show you how.

1. Choose the employee's name.
2. Select the pencil ✎ icon next to the Pay section.
3. Below Step 3, How much do you pay this employee, select + Add additional pay types (like overtime, sick, and vacation pay) .
4. Click the Even more way to pay this employee option.
5. Select all relevant fringe benefits.
6. Click Done.

For additional information about creating Fringe benefits paychecks, check out the following article. It also contains detailed steps and screenshots for visual reference: Add fringe benefits to paychecks.

After following the steps above, you'll now be able to proceed with choosing the right option from the Run payroll drop-down. Please note only employees with the fringe benefits pay types shows on the list. For more details about the supported pay types and deductions, click this article: Supported pay types and deductions explained.

Also, do check our Employees and payroll taxes page for reference. From there, you can read great articles and learn some best practices in managing your payroll taxes effectively. 

Please feel free to tag my name in the comment section if you need further assistance in setting up pay types or you have other questions in mind. I'd be very happy to lend a helping hand.

None of the fringe benefits listed are for gym memberships. Do you have any other workarounds without adding additional pay to the employee?

Let me provide you with some information about entering fringe benefits in QuickBooks Online, Merideth.

As mentioned by @JoesemM, you can create an additional pay type for the employee's gym membership. You can rename specifically to Gym's membership or change the pay type beside the pay type's name. You can also use these detailed steps which may look similar to what is provided above.

1. Select the Payroll menu, then choose Employees.
2. Select the name of the employee.
3. Select Edit employee.
4. Under How much do you pay. . ., select Add additional pay types.
5. Select the pay type that fits your purposes.
   • You may need to select Even more ways to pay. . . to make the pay type you're looking for available.
   • Enter an amount in the $ field to make the amount recurring, or leave it blank and just enter the amount when running payroll.
   • To rename or change the pay type, select the edit (pencil) icon beside the pay type's name.
6. Click Done.

For more payroll help articles, I have this link for your additional guide.

If there's anything else that you want us to help with your employees, let us know so we can get back to you.