Gym membership paid directly to gym by company on behalf of employees.

This should not be deducted - so the cost could hypothetically fall under a draw. 

Gym membership is deductible through many means - payroll expense / office expense just make sure that you have created a vendor for said Gym.

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@Alex_A wrote:

Our company pays for employee gym membership, but we do it directly with the gym so the membership shows up in our bank statements and in Quickbooks. I understand that this is a fringe benefit for employees but the only solution that I have found in the forums is to add it to the employees payroll. How do I categorize if the company pays for the benefit directly with the gym?

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When you include the gym membership in payroll, it would post under Other Income and link to a liability account.  Then when you post the actual payment you would use that same liability account as the expense (reason) for the payment

Thanks! Couple of questions

1) The liability would be "Other Current Liabilities"?

2) I can't seem to figure out how to link "Other earning type" to a liability account under the employees pay types.

Thanks again!