Fluid Simulation 2 - problems with Subsurf Modifier

I am doing the Fluid Simulation tutorial 2 from wikiblender. I followed the directions and created a glass and the fluid dropping into the glass. My problem is Blender is not recognizing the subsurf modifier that forms the glass shape and is treating my glass as a cube. The obsicale is behaving as if there are no modifiers on it and my fluid takes the shape of the cube.

Any ideas on what I’m doing wrong.

Apply the subsurf.

Thanks. Found the button.