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Fitness Studios & Gyms: Payroll Software vs. Managed Payroll Service (2026)
Payroll software gives a fitness business the fields; managed payroll gives it someone accountable for filling them correctly, which for fitness businesses means trainer 1099 vs W-2 classification, commission-based training pay and class-based instructor pay configured against the rules cited here rather than left at defaults. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What software leaves to a fitness business to get right
A commissioned trainer can be exempt from overtime under FLSA section 7(i) only if three conditions are met: the employer is a retail or service establishment, the employee's regular rate exceeds one and one-half times the minimum wage for every hour worked in any week with overtime, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is due at time and one-half for hours over 40.
Tips paid by customers can never be counted as commissions for the section 7(i) exemption, and a retail or service establishment is one where 75 percent of annual dollar volume is not for resale and is recognized as retail in the industry. Mandatory service charges paid to service employees may count as commissions.
The honest comparison
Software at roughly $40 to $150 a month plus $5 to $12 per employee handles a single-state, all-W-2, hourly-and-salary payroll well, and the customer owns every configuration decision, every deposit and every notice. Managed payroll at $45 per employee per month, with no monthly minimum, owns the configuration, the deposits, the filings and the corrections. For fitness businesses the deciding question is who documents the exemption status of personal trainers and group fitness instructors and who rebuilds the pay codes when the rule changes.
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.
- A commissioned trainer can be exempt from overtime under FLSA section 7(i) only if three conditions are met: the employer is a retail or service establishment, the employee's regular rate exceeds one and one-half times the minimum wage for every hour worked in any week with overtime, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is due at time and one-half for hours over 40. [DOL Fact Sheet #20]
- Tips paid by customers can never be counted as commissions for the section 7(i) exemption, and a retail or service establishment is one where 75 percent of annual dollar volume is not for resale and is recognized as retail in the industry. Mandatory service charges paid to service employees may count as commissions. [DOL Fact Sheet #20]
Read the full guide to fully managed versus self-service payroll, and the rest of the fitness business payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What does payroll software get wrong for fitness businesses?
A commissioned trainer can be exempt from overtime under FLSA section 7(i) only if three conditions are met: the employer is a retail or service establishment, the employee's regular rate exceeds one and one-half times the minimum wage for every hour worked in any week with overtime, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is due at time and one-half for hours over 40.
When is software the right answer for a fitness business?
A single state, all W-2, hourly and salary pay, no trainer 1099 vs W-2 classification, and under about 20 employees, where software's lower per-employee cost outweighs what a managed service adds.
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. Department of Labor: Wage and Hour Division
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