Healthy employees perform better and are absent less due to illness.
Now that it is still rainy and gray, it seems like a good idea for an employer to contribute to the costs of a sports or fitness subscription.
It seems like a good idea… but the question is whether such a contribution leads to a benefit in kind in payroll.
Is a fitness subscription a Benefit in kind ?
The question must be examined from the point of view of the social security and the tax authorities to determine the treatment of this benefit.
The principles of social security and the tax authorities are clear: every benefit to which the employee is entitled to from his employer on the basis of his employment relationship is considered as salary for which social security contributions and withholding tax must be paid.
The (re)payment by the employer of an individual fitness subscription or for another sport is a benefit that the employee obtains by virtue of his work and is therefore subject to ordinary social security contributions and withholding tax.
Alternatives to fitness subscription
- the employer reaches out to certain sport providers such as fitness centers and negotiates a reduction for its employees. This reduction is not regarded as salary, and it is thus not subject to social security contributions nor taxes to the extent that the reduction does not exceed 30 % of the normal price;
- the employer uses fitness facilities put at the disposal by the employer in the office (“company fitness”). In that case, no benefit in kind is due;
- the employer offers sports and culture vouchers (max. 100 EUR net/year) delivered by one of the three accredited providers in Belgium. Unfortunately, few sports clubs are affiliated to the sports and culture vouchers provider so it is important to check before if such vouchers would be useful for your employees.
For more information, do not hesitate to reach out to Pro-Pay via the contact sheet.
