Bookkeeping, payroll tax and sales tax for gyms & fitness studios
A gym’s income arrives as many small recurring payments through billing software and card processors. RazaPro reconciles those payouts to the bank each month, tracks prepaid packages, calculates payroll tax for a small team and prepares sales tax where the state taxes memberships.
What gyms & fitness studios have to get right
Memberships arrive as net payouts
Billing software and processors pay out after fees, failed payments and refunds. The bank shows one deposit while the member list shows hundreds of charges.
Prepaid packages and annual memberships
Money received for months or sessions not yet delivered is not fully income yet. How it is recognised is decided with the owner’s CPA.
Trainers and instructors
Some trainers are employees on payroll and others are contractors paid by the session or class. The classification depends on the facts and stays with the owner and their CPA.
Equipment, leases and loans
Equipment purchases, financing and a large rent payment make the balance sheet matter as much as the profit and loss.
What RazaPro does for gyms & fitness studios
- Membership, class and retail payouts matched to bank deposits
- Prepaid packages and annual memberships listed for the owner and CPA
- Bank and credit card transactions reconciled every month
- Payroll and payroll tax calculated for staff of three to five
- Trainer and instructor contractor payments tracked for 1099 totals
- Sales tax calculated each quarter where the state taxes memberships or retail sales
What it costs
Bookkeeping plus payroll tax ($130–$140 a month), with sales tax added where memberships are taxed ($150–$170).
Bookkeeping is priced by transactions: $75 a month up to 150 transactions, $100 up to 300 and $120 up to 500. Catch-up work, extra states and larger payrolls are quoted before any work starts.See all plans and the estimator.
Software: QuickBooks Desktop, including a shared file on a virtual machine, and QuickBooks Online.
Sales tax
Some states tax gym memberships or fitness services and others do not, and retail items such as drinks and apparel are usually taxable. RazaPro calculates sales tax on whatever the client’s state taxes, once the owner’s CPA confirms the rule.
Payroll and payroll tax
A team of three to five employees is the standard scope: payroll each month or quarter, payroll tax deposits and returns prepared and delivered on time.
Not included in the standard scope
- Revenue-recognition decisions for prepaid memberships (owner and CPA)
- Membership billing-system administration
- Multi-location consolidation
- Pricing and membership-plan consulting
RazaPro does not prepare or file income tax returns or give tax advice. Tax decisions and signatures stay with the business and its CPA.
Work our team has done in this industry
Our team has handled this monthly routine for a US accounting firm’s clients, including a gym, a restaurant and a construction company.Client names are not published, and results vary by client.Read the anonymous case studies.
Frequently asked questions
How much does bookkeeping cost for a gym?
Bookkeeping is $75 to $120 a month depending on transactions. With payroll tax it is $130 to $140, and the complete plan with sales tax is $150 to $170.
Can you reconcile membership software payouts?
Yes. Payouts are matched to bank deposits and fees, refunds and failed payments are recorded so the books agree with the bank.
How are prepaid memberships treated?
They are listed separately for the owner and CPA to decide how and when the income is recognised.
Are gym memberships subject to sales tax?
It depends on the state. RazaPro calculates the tax where the state requires it, after the owner’s CPA confirms.
Accounting firm with gyms & fitness studios as clients?
RazaPro does this work under your firm’s name at wholesale prices from $40 to $70 per client a month, with a free 30-day pilot on up to 3 clients.See the firm program.
Serving businesses across the US
RazaPro supports businesses in every state. State guides with local tax detail:Texas, Georgia, Colorado, New York, New Jersey, Florida, California, Illinois. Other industries:Salons & Barbershops, Pharmacies & Healthcare, Restaurants & Bakeries.All industries.
Talk through your gyms & fitness studios books
Book a free 30-minute consultation and get a clear scope and price.
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