Gym membership paid directly to gym by company on behalf of employees.

This should not be deducted - so the cost could hypothetically fall under a draw. 

Gym membership is deductible through many means - payroll expense / office expense just make sure that you have created a vendor for said Gym.

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@Alex_A wrote:

Our company pays for employee gym membership, but we do it directly with the gym so the membership shows up in our bank statements and in Quickbooks. I understand that this is a fringe benefit for employees but the only solution that I have found in the forums is to add it to the employees payroll. How do I categorize if the company pays for the benefit directly with the gym?

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When you include the gym membership in payroll, it would post under Other Income and link to a liability account.  Then when you post the actual payment you would use that same liability account as the expense (reason) for the payment