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Fitness Studios & Gyms: How to Calculate Your Payroll Costs (2026)
A fitness business payroll cost calculation has three inputs: headcount, the fitness business pay codes that have to be built (trainer 1099 vs W-2 classification and commission-based training pay), and the wage base, which at the BLS national median for exercise trainers and group fitness instructors is $47,160. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Managed payroll by headcount for a fitness business
10 employees: $450 a month, $5,400 a year; 25 employees: $1,125 a month, $13,500 a year; 50 employees: $2,250 a month, $27,000 a year; 100 employees: $4,500 a month, $54,000 a year. Every row is $45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum, so the per-employee cost is the same at 10 as at 100. Nothing in the fitness business setup, trainer 1099 vs W-2 classification, commission-based training pay, class-based instructor pay and membership revenue sharing, is billed as an add-on.
The employer-side tax that rides on every fitness business wage
At the May 2025 national median for exercise trainers and group fitness instructors, $47,160 a year or about $23 an hour, the employer share of Social Security and Medicare is $3,608 per employee per year and FUTA is $42 after the state credit, before state unemployment at the assigned rate. Those costs are the same whoever runs payroll; the calculator question is only who does the work and who carries the error.
Employees must report cash tips to the employer in a written statement by the 10th day of the following month unless total tips from that employer are under $20 for the month. The employer must withhold income tax and the employee share of Social Security and Medicare tax on reported tips and pay the employer share.
The in-house line in the calculation
BLS OEWS May 2025: payroll and timekeeping clerks, national median $58,260, mean $59,630. Add roughly 30 percent for benefits and employer taxes, about $75,738, before the software that person runs, and set it against the headcount rows above. Managed payroll stays under that loaded figure until about 140 employees.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Employees must report cash tips to the employer in a written statement by the 10th day of the following month unless total tips from that employer are under $20 for the month. The employer must withhold income tax and the employee share of Social Security and Medicare tax on reported tips and pay the employer share. [IRS Tip recordkeeping and reporting]
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Frequently Asked Questions
What does managed payroll cost a fitness business with 25 employees?
$1,125 a month at $45 per employee, all-inclusive.
What is the employer payroll tax on one of the exercise trainers and group fitness instructors?
$3,608 a year in Social Security and Medicare at the $47,160 BLS OEWS May 2025 national median, plus $42 FUTA and state unemployment.
Is the fitness business pay code setup an extra charge?
No. Trainer 1099 vs W-2 classification, commission-based training pay and class-based instructor pay are configured at implementation inside the per-employee rate.
What does managed payroll cost for a fitness business?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Trainer 1099 vs W-2 classification, commission-based training pay and class-based instructor pay are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Fitness Studios & Gyms. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
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