FinFETS and methods for making FinFETs with a recessed stress liner. A method includes providing an SOI substrate with fins, forming a gate over the fins, forming an off-set spacer on the gate, epitaxially growing a film to merge the fins, depositing a dummy spacer around the gate, and recessing the merged epi film. Silicide is then formed on the recessed merged epi film followed by deposition of a stress liner film over the FinFET. By using a recessed merged epi process, a MOSFET with a vertical silicide (i.e. perpendicular to the substrate) can be formed. The perpendicular silicide improves spreading resistance.