Under What Condition Is the Fringe Benefit of a Gym

question 18

Multiple Choice

Under what condition is the fringe benefit of a gym membership taxable?

• A)When the employer has on-site facilities that are restricted to employee use.
• B)When the employer offers membership to an off-site club at no additional cost to the employee.
• C)When the employer has on-site facilities that are open to public use.
• D)Gym memberships are always taxable.

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Definitions:

Building's Custodian

A person responsible for the maintenance and upkeep of a building.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods during a specific period, including materials, labor, and overhead costs.

Direct Labour Cost

The wages and benefits paid to workers who are directly involved in the production of goods or services.