I work for a Bay Area company that has a very conservative interpretation of this "extra perks as compensation which is taxable thing". Yes, gym memberships and

I work for a Bay Area company that has a very conservative interpretation of this "extra perks as compensation which is taxable thing". Yes, gym memberships and lunch are counted as taxable compensation. And no, our company does not "gross up". It's a marginal cost per day/month, and frankly speaking, most of the people at the company can afford it.