1. To: John E. Davies, President
From: Modupe O. Sarratt, Executive Assistant
cc: Dr. Harris, Dr. Alonge, Paul Cahn, Alicia Blake, and Sarah King
Date: 03/08/12
Subject: Creating an on-site workout facility
Thank you for taking the time to review my proposal to research Creating On-Site Workout
Facility/gym, and especially informing me about the current economy.
What you identify as the reason for rejecting the proposal, that is, “our company’s profits were
significantly reduced in the last two years due to the current state of economy” was discuss on
November 21, 2011 questionnaire that was emailed to the entire staff along with the subject on
decrease in productivity.
The suggestion to create on-site gym was to improve our economy with improving our health,
and having a gym would allow us to attract superior customer like you.
The employees survey whether having a gym would be an expense to them, majority of
employees even indicated that they would donate a week paycheck to the project of creating
an onsite gym if the need arise. We really appreciate our employees taking an interest in our
company.
Having gym is a tax benefit for the employee and the company, and it is a necessity for today
corporate to provide workout facility according to the article, “Corporate Wellness” by
Alexandra Williams, “Today Companies wellness/prevention programs as a necessity. . .
Whether we work through human resources, benefits, facilities or sourcing, the key is to
provide them with both the human and financial benefits and reasons for instituting a worksite
wellness program” (IDEA 2008).
In addition, the IRS provides tax benefits to companies who have on-site workout facilities,
according to Hearst Communication Inc Tax Incentive for Workforce Health Improvement
Program Act, “IRS allows businesses to deduct only the costs of providing on-site gym facilities
and employees do not pay taxes on those benefits.” (Hearst)
The USGS Physical Fitness Program Handbook for funding suggested, “To buy equipment or
establish an on-site fitness center, overall costs may not exceed $300.00 per employee times 10
years.” (USGS)
The references provide information why having onsite gym is a profit to both employees and
employers and in today corporate, onsite workout facility is necessary.
2. Reference
Hearst CommunicationInc.Tax IncentiveforCompanywhooffergymsincentive (2012)
http://smallbusiness.chron.com/tax-incentives-companies-offer-gym-memberships-18505.html
IDEA FitnessJournal,Volume 5,Number5(2008) Corporate Wellness—ProgrammingforProfit
http://www.ideafit.com/fitness-library/corporate-wellness-programming-profit
USGS Gov Human Capital ServicesandSupportPhysical FitnessProgramHandbook-Funding(2011)
http://www.usgs.gov/humancapital/pb/physicalfitnesshandbook.html
