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StayFit Rewards Program

 
StayFit Rewards was a wellness program designed to help members pay for qualified fitness and exercise centers.  Unfortunately, the PEBB board ended the program in response to a recent IRS determination regarding the tax status of employee wellness incentives and rewards. The program ended July 31, 2016.
 
Why did the StayFit Rewards program end?
The IRS concluded that all cash incentives or rewards paid to employees for participation in an employer-sponsored wellness program are considered a payment of wages subject to employment taxes.
 
Can’t participants simply add the total amount they received on their tax return?
Employers are required to report all wages paid to employees and pay corresponding employer taxes wages.   Failing to report the correct wage and tax amounts for the employee or employer can result in IRS penalties to each.
 
Will the state deduct and report 2016 taxes on incentives paid to the end of the program?
No. PEBB is ending the program within a reasonable time from receiving the IRS information.  Your StayFit subsidy payments may be considered taxable income, consult a tax professional.
 
Is it too late to submit enrollment forms or gym attendance?
Unfortunately, yes it is.  Members had until August 15, 2016 to enroll in the program and until September 15th to turn in any outstanding gym attendance. 
 
For those members who are enrolled and have already submitted their gym attendance, when will PEBB send out the last payment?
The last payment will be made for any attendance from January through July 2016 by the first week of October.   The StayFit program does not issue paper checks, the payment will be made via direct deposit.