I had the EXACT same thing happen. However i had the polyps first...then the sponge took off and started growing in and around them just like yours. The polyps are not "rooted" to the sponge...the sponge just grew around the polyps.
Eventually my polyps kept getting worse and worse. It was covering a big rock tho, and sponges are good filters, so i just threw it in the sump so i'm not sure how the polyps are doing now (prolly gone since there's no light, but they were almost gone when i put them in there).
Maybe you can pick it off? But if you do, make sure you get ALL of it, because if a sponge dies, it causes a bit more trouble than most other things would.
Sidetracked, but i dont think those are button polyps...arent those some sort of zoa or paly?