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Gym Membership: Adding and Managing your Benefit
Gym Membership: Adding and Managing your Benefit
Rebecca Russell avatar
Written by Rebecca Russell
Updated over a week ago

This article explains how to set up and manage gym membership benefits, whether the benefit is payrolled or non-payrolled.

Feature overview

βœ… Enter the gym membership as a monthly value or an annual value.

βœ… Manage any employee contributions towards the membership, which show on the employee's payslip for full visibility. You can enter how much they will contribute to the membership and how much the employee pays (if applicable)

βœ… The employer's contribution towards the cost of the membership is shown on the employee's payslip under the Employer's costs section.

βœ… Non-payrolled gym memberships are added automatically to the employee's P11D at the end of the year.

βœ… Payrolled gym memberships are added to the employee's taxable pay each month and reported to HMRC.

βœ… Add memberships in bulk or make changes one employee at a time.

❌ Only admins and not employees, can set up and manage a gym membership.

Enable gym membership as a benefit

  1. From the left, choose Company settings, then Benefit settings.

  2. Under the General settings section, click Set benefits preferences.

  3. Answer each of the questions, then click Save.

  4. From the left, choose Company settings, then Benefit settings.

  5. Under the General settings section, click Activate benefits schemes.

  6. Enable Gym membership, then click Save.

Set up a gym membership scheme

  1. From the left, choose Benefits in kind, then Gym membership.

  2. In the Gym membership section, click Scheme settings.

  3. Choose whether you will enter your membership costs each month or at the end of the year. If your employees contribute to the scheme, you should choose the monthly cost and contributions option.

  4. Click Save.

Add employees to the gym membership scheme

  1. From the left, choose Benefits in kind, then Gym membership. If you only have gym memberships enabled, simply choose Gym membership from the left.

  2. Follow the instructions below, depending on whether you'd prefer to add employees to the scheme one at a time, or in bulk.

Add employees one at a time

Choose whether you'd prefer to enter Monthly or Annual values below.

Tip: If your employees contribute towards the scheme or your gym memberships are payrolled, you need to enter the values on a monthly basis.

Monthly values

3. From the Table view drop-down, choose Monthly values.

4. Use the Search for an employee box to find the relevant employee.

5. In the table below, next to the employee's name, click Edit.

6. Toggle on the Subscribe <employee name> to Gym membership option.

7. In the Employer cost field, enter the full employer cost, i.e., the total amount paid to the gym membership provider.

8. If the employee contributes towards their gym membership, enter the Monthly amount contributed by employee. This is displayed as a deduction on the employee's payslip.

9. Click Save.

Annual values

3. From the Table view drop-down, choose Year-To Date values.

4. Use the Search for an employee box to find the relevant employee.

5. In the table below, next to the employee's name, click Edit.

6. Toggle on the Subscribe <employee name> to Gym membership option.

7. In the Year-To-Date employer cost field, enter the full employer cost, i.e., the total amount paid to the gym membership provider.

8. Click Save.

Add employees in bulk

Choose whether you'd prefer to enter Monthly values or Annual values below.

Tip: If your employees contribute towards the scheme or your gym memberships are payrolled, you need to enter the values on a monthly basis.

Monthly values

  1. From the Table view drop-down, choose Monthly values.

  2. Click Edit monthly values.

  3. Click Download a template.

  4. Complete the downloaded template as follows:

Tip: You can delete employees from the template if you don't want to include them, or you can leave them on the template with no changes

Column A - ID: Do not change

Column B - Name: Do not change

Column C - Subscribe to Gym membership: Enter Yes.

Column D - ER cost: Enter the full membership cost for the month. This is the total value that both employer and employee pay every month.

Column E - EE cost: Employee's contributions to be deducted via payroll (net deduction after tax and national insurance).

5. Save and close the template, then drag and drop it into the Upload your filled-in file page.

6. Click Import data, then Yes, finish import.

Annual values

1. From the Table view drop-down, choose Year-To-Date values.

2. Click Edit yearly values.

3. Click Download a template.

4. Complete the downloaded template as follows;

Tip: You can delete employees from the template if you don't want to include them, or you can leave them on the template with no changes.

Column A - ID: Do not change

Column B - Name: Do not change

Column C - Subscribe to Gym membership: Enter Yes.

Column D - Year-To-Date employer cost: Enter the full membership cost for the tax year.

5. Save and close the template, then drag and drop it into the 2. Upload your filled-in file page.

6. Click Import data, then Yes, finish import.

Frequently asked questions

How is a gym membership displayed on an employee's payslip?

The employer cost of the gym membership displays in the employer costs section in the top right corner of the payslip. The Benefits value includes all benefits added to PayFit, for example, private medical insurance, company cars and vouchers.

If the employee contributes towards the cost of the membership, this is shown as Gym membership in the Deductions section.

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