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Home : Essentials of Payroll : Club Memberships
Club MembershipsClub MembershipsClub dues are taxable income to the employee, except for that portion of the dues that are business related, which must be substantiated. Clubs that fall into this category are airline and hotel clubs, as well as golf, athletic, and country clubs. The portion of the club dues that are personal income to the employee can be treated as a wage expense to the employer for tax purposes. Example. Brad Harvest is a member of an airline club, which allows him access to club facilities at a variety of airports around the country. He estimates that he uses these facilities 70 percent of the time while he is traveling on company business. He can substantiate this estimate with travel records. The annual cost of the membership is $400. Accordingly, only 30 percent of the cost, or $120, is recognizable as his personal income. 131
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