What is the effect on an employees income when the employer pays that employees share of social security and medicare taxes on a fringe benefit?

What is the effect on an employees income when the employer pays that employees share of social security and medicare taxes on a fringe benefit?
A . there is no change
B . the taxes paid by the employer are considered income to the employee
C . the amount of the fringe benefit is included in the employees income
D . there are no ss or medicare taxes on fringe benefits

Answer: C