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, can Payroll carry 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.