Most adults say they want to be healthier, yet few follow through. Gallup’s Employee Well-Being Index shows overall well-being declined again in 2025, and McKinsey found that wellness is now a top personal priority for 82% of U.S. consumers. The gap between intention and action is exactly where employers can make a difference.
A corporate gym reimbursement — also called a fitness reimbursement benefit or gym membership reimbursement program, among other names — helps close that gap by covering a portion of employees’ fitness and wellness expenses. It’s a simple, flexible way to support physical and mental health while strengthening engagement and performance.
It’s also one of the easiest employee benefits to set up. In this guide, we’ll show you how it works, why it matters, and how to launch a corporate gym reimbursement program that’s both compliant and easy to manage.
What is a fitness reimbursement program?
A fitness reimbursement program is an employee perk that covers the cost of fitness and wellness activities. It’s an employer-funded plan that gives all employees access to the types of movement or self-care that work best for them.
Examples of expenses covered in a company’s fitness program include:
- Gym, fitness center, and studio memberships
- Yoga, pilates, and spin classes
- Personal training or coaching sessions
- At-home workout equipment like mats, weights, or resistance bands
- Spas, massage therapy, and recovery services
- Country clubs and golf courses
- Recreational sports or running clubs
Each company sets its own reimbursement amount. Employees can then use that budget to cover fitness expenses that meet their goals and preferences, such as cycling, strength training, yoga, mindfulness classes, or wellness retreats.
According to our 2025 Midyear Lifestyle Benefits Benchmark Report, 34% of Compt customers offer wellness stipends, with funding typically ranging from $400 to $1,920 per employee per year. In addition, 99% of Compt LSAs include wellness as a perk category.
Reimbursement vs. subsidy
When it comes to fitness perks, there’s an important distinction between gym subsidies and reimbursements. While both help employees stay active, the structure behind each approach makes a big difference in how inclusive, flexible, and easy to manage your program will be.
| Model | How it works | Pros | Cons |
|---|---|---|---|
| Subsidy | The company pays a specific gym or vendor directly (for example, through a corporate contract or discounted rate). | Easy to set up with one provider | Limits employee choice; may exclude remote or hybrid workers |
| Reimbursement (including stipends) | Employees choose their own gym or wellness option, pay upfront, and submit a receipt for repayment. | Flexible, inclusive, and IRS compliant; supports any eligible wellness activity | Usually taxable to employees; requires light admin oversight for approvals |
At Compt, we view stipends as a type of reimbursement program — one that gives employees a set budget (monthly, quarterly, or annually) to spend on approved expenses like gym memberships, fitness apps, or home equipment. The process is the same: employees pay upfront and are reimbursed through payroll once their receipt is approved.
This model offers the best of both worlds: employee choice and tax compliance, without the complexity of managing vendor contracts or prepaid cards.
Want to experience it for yourself? Request a demo to see how Compt automates reimbursements, approvals, and payroll integration, all in one platform.
In the Midyear Benchmark Report, we found 53% of programs are funded quarterly, giving employees a predictable cadence while simplifying forecasting for HR and Finance.
Key benefits of corporate fitness reimbursement
Like other lifestyle benefits, a corporate gym reimbursement program is a straightforward way to promote your employees’ health. It creates a positive dialogue around physical health by supporting and empowering people to make healthy choices that fit their lives.
Here are some key benefits of corporate fitness reimbursement:
Improves employee well-being
In McKinsey’s global wellness research, most U.S. consumers said wellness is a top priority. Reimbursements for fitness and sporting activities can help employees maintain their physical health, which also positively affects mental wellness and their ability to manage stress.
Enhances productivity and performance
Exercise improves mood, energy, cognitive functions, and countless other factors. That’s why, according to Wellhub’s 2026 State of Work-Life Wellness report, 89% of employees say when they prioritize well-being, they are able to perform better at work.
Reduces health insurance costs
According to data from the CDC, an effective workplace health program (which includes fitness perks) leads to savings on healthcare costs. Absenteeism, workers’ comp claims, and disability costs are also reduced.
Delivers high ROI
Every dollar spent on workplace disease prevention and wellness programs resulted in a $2.73 decrease in absenteeism expenses and a $3.27 decline in medical costs, resulting in a 6:1 return on investment, according to a Harvard study.
Builds an inclusive, health-centric company culture
When everyone is encouraged to exercise and take part in fitness activities they prefer, it creates a culture that promotes healthy living and shared accountability for wellness. Reimbursement programs make participation accessible to all employees, not just those located near a corporate gym.
Supports personalization
Individual preferences vary. A reimbursement approach allows people to choose what fits them best, ensuring everyone is happy.
Boosts employee recruitment and retention
Job seekers and team members alike consider wellness programs a high priority. As Aflac found in its 2025-2026 WorkForces Report, “Employees who are only ‘somewhat’ satisfied with their benefits are nearly half as likely to report high job satisfaction as those who are highly satisfied, highlighting the importance of moving beyond ‘good enough.'” As a result, providing a corporate gym reimbursement a great way to strengthen and reinforce a strong, attractive employer brand.
Compt customer data shows lifestyle stipend programs average 93% employee participation, demonstrating that when employees can choose how to use their wellness budget, they actually use it.
What to consider before offering a fitness reimbursement program
A fitness reimbursement program can be as simple or as robust as you make it. Before you roll one out, it’s worth taking a few key factors into account.
Financial feasibility
Some enterprise companies offer extensive health and wellness benefits. Many organizations, however, start small and scale their wellness reimbursements over time based on participation and feedback.
One of our clients uses Compt to offer employees $200 per month toward fitness reimbursement (or whatever else!). According to our midyear benchmarks, wellness funding typically ranges from $400 to $1,920 per employee per year, and most programs are funded quarterly (53%).
These ranges are just examples; you can design your program however you like. Work with your Finance team to determine what’s feasible, then design a reimbursement policy that fits your budget, workforce, and goals.
Accessibility and inclusion
To maximize participation, make sure your program supports employees of all abilities. Consider options that include at-home workouts, adaptive fitness, concierge physical therapy, or virtual classes for those who can’t easily commute to a gym or participate in traditional activities.
This ensures your fitness benefits truly meet employees where they are: at home, in the office, or anywhere in between.
A supportive environment
Wellness shouldn’t feel mandatory. A successful stipend/reimbursement program encourages healthy choices and creates space for employees to define what “fitness” means to them.
By taking a flexible, supportive approach, you can promote physical and mental well-being without adding pressure or stigma, or making it feel like an obligation.
Tax implications
Most wellness and fitness reimbursements are taxable when treated as part of an employee’s pay. A few exceptions exist, such as when reimbursements fall under certain qualified programs.
Compt is 100% tax-compliant, meaning every reimbursement is automatically categorized for IRS compliance. Learn how you can run your fitness reimbursement program without chasing tax codes or worrying about how to report repayments at tax time.
68% of wellness stipends at Compt are now bundled with other categories, such as food, experiences, productivity, personal and professional development, and family or caregiving. Why lean on multiple vendors when you can have one that does it all?
How to launch a fitness reimbursement employee benefit
There’s a right way and a wrong way to do corporate gym reimbursement. A successful program aligns your company goals with employees’ health interests and makes participation simple for everyone involved.
7 steps to launch fitness reimbursement benefits
- Create your budget.
Work with your finance team to set a realistic budget for fitness expenses. Remember, you don’t have to spend a ton of money for an effective program. It’s how employees use their wellness stipends that matters most.
- Determine eligibility.
Most employers restrict who can qualify for fitness reimbursement. You may choose to extend this benefit only to full-time employees, or include part-timers and contractors.
It’s generally a good idea to make it accessible to as many people as possible. If you have a contract workforce that works 30 to 40 hours per week, we strongly recommend extending the benefit to them as well. And if you have interns, you could consider a smaller reimbursement amount. - Write your policy.
Document your program’s terms, limits, and requirements. Include a clear list of approved activities and expenses, submission rules, and reimbursement caps so everyone understands how it works.
Be sure to include anything else you deem necessary for the program to succeed (e.g., outline that your policy limits payments to a certain percentage of total gym fees). - Choose program coverage.
Decide what types of providers and activities you’ll reimburse. Focus on inclusivity and go beyond gym memberships; think virtual fitness, at-home equipment, adaptive workouts, and recovery services. You may even reimburse home workout equipment for remote employees or those who dislike exercising in public spaces.
There are dozens of ways to use a health and wellness stipend; to avoid missing the mark with certain groups of employees, we recommend keeping your program broad. - Set up processes.
Create a simple system for enrollment and claims. Look for a platform that manages receipt uploads, real-time expense management, and payroll integration to save time and ensure compliance. (Your Finance team will thank you.)
With Compt, employees can upload receipts in seconds while HR and Finance manage reimbursements with built-in tax logic and reporting.
Want to see how it works? Request a demo to see how Compt handles wellness reimbursements and stipends. - Monitor progress.
Track enrollment, utilization, and feedback over time. If participation is low, employees may not know about the program or find it confusing to use.
Start with an employee benefits survey to get a baseline for employee engagement, then survey employees again about six months after implementing your fitness reimbursement program to check in on which metrics have moved. - Encourage participation.
In a Freeletics poll of 2,000 Americans, 50% said they simply don’t enjoy physical exercise. If you want to make a meaningful difference in your employees’ lives, you have to find a way to make it engaging for them.
Wellness should be enjoyable, not a chore. Create friendly challenges, sponsor 5Ks, or offer small incentives to keep engagement high. This will help integrate fitness deeper into your company culture and improve participation in your fitness reimbursement program.
Common mistakes employers make with fitness reimbursements
Even the best intentions can fall short if your program isn’t built for scale or clarity. Here are some of the most common pitfalls, and how to avoid them:
- Relying on spreadsheets or manual tracking: These types of systems slow everything down and increase the risk of lost data or delayed payments.
- Skipping payroll integration: If reimbursements aren’t synced with payroll, you risk delays, compliance issues, and frustrated employees.
- Overlooking employee needs: Programs that only support certain locations or activities can exclude employees who are remote, hybrid, or have a disability. A broad, flexible wellness stipend is a great way to quietly signal that you’re an inclusive employer.
- Lacking a clear policy: Ambiguity around eligibility, reimbursement limits, and approved expenses creates confusion and inconsistent participation.
- Forgetting tax implications: Most gym reimbursements are taxable. Misclassification means headaches for your Finance pals come tax time.
With Compt, you can eliminate these issues entirely. The platform automates reimbursements through payroll, is structured around your policy, and ensures every claim is properly categorized for tax compliance.
Offer a corporate gym benefit with Compt
With Compt, you can create your own custom health and wellness stipend, including gym memberships and tons of other ways to promote wellness for your people. Employees can simply upload their receipts and get reimbursed through your payroll provider.
It’s that easy!
Compt can help you manage all your lifestyle benefits in one place, including corporate gym reimbursement with wellness stipends. All 100% tax-compliant.
Schedule a demo to see how it works.
FAQs: Corporate gym reimbursement with Compt
Corporate gym reimbursement is an employee benefit that repays staff for approved fitness or wellness expenses such as gym memberships, fitness classes, or at-home workouts. Employees pay upfront, submit a receipt, and receive repayment through payroll. At Compt, this process is automated, with built-in tax logic and policy controls to keep reimbursements for wellness stipends 100% compliant for the IRS.
Why do employers provide corporate gym reimbursement to their staff?
Employers use gym reimbursement programs to promote health, reduce stress, and boost productivity. In Wellhub’s 2026 State of Work-Life Wellness report, 89% of employees say when they prioritize well-being, they are able to perform better at work. It’s also a competitive differentiator for recruitment and retention: As Aflac found in its 2025-2026 WorkForces Report, employees who are only “somewhat” satisfied with their benefits are nearly half as likely to report high job satisfaction as those who are highly satisfied.
How can employees claim corporate gym reimbursement effectively?
It’s easy, especially with Compt: Employees simply pay for an eligible fitness expense, then upload their receipt to their company’s benefits platform. The reimbursement happens via payroll, often within 1-2 pay periods.
What are the best practices for employers to implement successful corporate gym reimbursement programs?
Start with a clear policy, inclusive design, and consistent funding cadence (see above for the full list of steps). Many programs are funded quarterly, which balances predictability for Finance with flexibility for employees. Compt’s 2025 Midyear Benchmark Report found that 53% of stipend programs follow this cadence.
How does corporate gym reimbursement impact employee health and productivity?
It’s one of the few employee benefits with a measurable connection to both employee health and productivity. Regular exercise improves energy, focus, and mood. The CDC links well-designed wellness programs to lower absenteeism and healthcare costs, while employees report higher engagement when fitness is part of their routine.
What are the common eligibility criteria for corporate gym reimbursement programs?
Eligibility varies by company. Most employers extend reimbursement to full-time employees, but some include part-time staff and contractors to promote inclusion and allow everyone access to the same benefits. It’s completely up to you, and your Compt Customer Success Manager can provide guidance as you build out your program.
Which types of gym memberships or fitness activities qualify for corporate gym reimbursement?
Eligible expenses typically include gym memberships, studio classes, fitness apps, personal training, and home workout equipment. Some companies also reimburse recovery services (like massage therapy), mental health services, at-home fitness equipment, and recreational sports fees. It depends on what your policy defines as “wellness-related.”
What are the typical limits or caps on corporate gym reimbursement amounts?
Funding levels vary by company size and industry. Compt’s 2025 Midyear Benchmark Report found that wellness stipends usually range from $400 to $1,920 per employee per year, with most companies funding them on a recurring quarterly basis.
Are corporate gym reimbursements taxable income for employees?
In most cases, yes. The IRS generally considers gym and wellness reimbursements taxable unless they fall under specific exclusions. Compt automatically classifies expenses as taxable or nontaxable based on IRS rules and payroll integration, so HR doesn’t have to manage it manually.
Which well-being platforms integrate with payroll to make reimbursements seamless?
Compt offers wellness stipends and all-inclusive LSAs, and integrates directly with major payroll systems such as ADP, Gusto, and UKG to automate payments. This ensures accuracy, saves time, and overall improves your employees’ experience with their benefits.
Originally published in 2023, this post has been recently updated for clarity and relevance for our readers.
