Under the rules and regulations for social security, medicare and unemployment taxes, an employee and new employer cannot get credit for taxes already deducted by a prior employer when an employee moves to a new employer during a tax year for which deductions have already been made by the prior employer. One exception to this general rule — the successor rule — applies in certain cases when the assets of an employer are purchased. For purposes of determining whether a successor employer has reached the social security wage threshold, the successor rule allows a successor employer to take credit for the wages that a predecessor employer paid to an employee during the calendar year if certain rules are met. The Code and regulations provide a
