Fostering employee well-being while optimizing costs is a top priority in today’s businesses. The trend of incorporating in-office gyms has gained traction, offering a dual advantage of enhancing employee health and reaping tax benefits. In this blog, we explore how having an in-office gym can lead to improved employee well-being and substantial tax efficiency, specifically in Quebec, Canada.
The Power of In-Office Gyms:
Research from the International Journal of Workplace Health Management reveals that companies with in-office gyms witness up to 75% higher employee morale and reduced absenteeism. This stems from the convenience of an on-site gym, saving time and effort compared to external fitness centers.
Enhanced Employee Wellness:
Incorporating fitness into the work routine brings remarkable benefits. Studies published in the Journal of Occupational and Environmental Medicine indicate that active employees perform 15% better and are 27% less likely to experience burnout. In-office gyms promote consistent exercise, positively impacting both physical and mental health, resulting in improved job satisfaction and productivity.
Quebec and Canada's Tax Advantage:
From a tax perspective, investing in an in-office gym in Quebec and Canada offers a strategic way to provide additional employee benefits without a tax impact. Compared to corporate policies that refund commercial gym memberships as taxable benefits, both provincial and federal regulations consider in-office gym access as a non-taxable benefit as per the Canada Revenue Agency (CRA).
Deductible Business Expenses:
In Quebec (and the rest of Canada), expenses related to constructing, maintaining, and operating in-office gyms qualify for tax deductions for employers. The Quebec Ministry of Finance defines these as "employee welfare expenses," covering equipment, facility renovations, maintenance, and fitness classes.
As the business landscape evolves, innovative strategies that prioritize employee well-being and financial efficiency are essential. In-office gyms exemplify this approach by offering health benefits and tax advantages. In Quebec, integrating fitness facilities within the workplace not only improves employee health but also optimizes taxes, contributing to long-term cost savings.
International Journal of Workplace Health Management, "The Business Case for Employee Fitness Programs,"
Journal of Occupational and Environmental Medicine, "Physical Activity and Employee Performance at the Workplace,"
Canada Revenue Agency, "Employer's Guide – Taxable Benefits and Allowances,"
Quebec Ministry of Finance, "Tax Measures – Quebec,"