No a fringe benefit does not get "deducted" from your paycheck
in a traditional manner. If you receive a check for $1000 and $250
are total taxes, then your net is $750. If you receive a check for
$1200, which includes the $200 fringe, then taxes are $275, then
your net is $275. The difference is that you have paid the taxes on
the fringe benefit. Basically, your employer adds the fringe amount
to your gross wages, figures the taxation, then removes the fringe
to make is "wash".