XYZ Company chose to pay an employee's share of Social Security and Medicare taxes on the value of noncash fringe benefits. What effect does this have on the employee's wages for the tax year?
a) This choice will not affect the employee's wages.
b) The employee's wages must be increased by the employee's share of Social Security andMedicare taxes paid by the employer.
c) The employee's wages will be decreased by the amount of taxes the employer paid.
d) The employee's wages will increase by 30%.