Q: We purchased some technology from another company and the deal included the transfer of some employees. Since we didn’t buy the entire company, cancarry over their FICA and FUTA wages?
A: It sounds like there’s no merger or acquisition, just the purchase of technology. If that’s the case, FICA and FUTA wages restart at $0.
However, if you acquired a substantial portion of this business, you may be considered a successor employer. In that case, employees’ FICA and FUTA wages carry over to your company.