Fringe benefits are included - but not the total amount

the gross value of the fringe benefits is reported, but only about 53.5% f the grossed up value is counted as income

so if your income is 50000 plus 10000 gross value of fringe benefits, your total income for FTB purposes would be 55350 (or thereabouts - can't recall if it's 51.5 or 53.5%)

does that help?