Under what condition is the fringe beneﬁt of a gym membership taxable?

Question

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According to IRS regulations, the value of a gym membership offered by an employer is only taxable if the membership is for an off-site club and is offered at no additional cost to the employee. This is because the value of the membership is considered to be additional compensation and should be included in the employee's taxable income. Gym memberships offered by the employer for on-site facilities, whether they are open to the public or restricted to employee use, are generally not taxable fringe benefits.

Under What Condition Is the Fringe Beneﬁt of a Gym