If your employer included the amount of the benefit on your W-2 wages, then yes, Social Security and Medicare would be paid on this amount.
A fringe benefit is a form of pay for the performance of services, given by the employer to the employee. For example, Personal Use of a Company Car (PUCC), in which you allow the employee to use a business vehicle for personal use, is a type of fringe benefit.
Non-cash fringe benefits should ideally be reported on a paycheck where the employee has regular wages to offset the taxes on the fringe benefit items.
Click this link for more info on Employee Fringe Benefits.
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