Under what condition is the fringe benefit of a gym membership taxable?
A)When the employer has on-site facilities that are restricted to employee use.
B)When the employer offers membership to an off-site club at no additional cost to the employee.
C)When the employer has on-site facilities that are open to public use.
D)Gym memberships are always taxable.

Question

Quizplus · Accepted Answer

According to the IRS, if an employer offers a gym membership to an off-site club at no additional cost to the employee, the value of the membership is considered taxable income for the employee. This is because the membership is seen as a form of compensation, and therefore subject to taxation.

Under What Condition Is the Fringe Benefit of a Gym