Shaq to UKs soon-to-be pros: FICA will take all your money.

[TexasTowelie]

WILLIAMSBURG -- Before they ever dress in NBA uniforms, the University of Kentucky’s latest soon-to-be millionaires should have some business sense about them.

That was the advice offered by Shaquille O’Neal, a Naismith Hall of Fame member who won four NBA championships before retiring in 2011. He was in town as the keynote speaker for the University of the Cumberlands’ 12th annual edition of “The Excellence in Leadership Series.”

“Be prepared to handle your business,” O’Neal said. “Nineteen-year-olds, 20-year-olds making 20, 30 million (dollars), it’s kind of hard to handle. You need to have some sort of business type about yourself.”

O’Neal added with a grin, “One term you must know is FICA. FICA will take all your money.”

Read more here: http://www.kentucky.com/sports/nba/article143003199.html

[metroins]

1. No it won't, Shaq is wrong.

FICA comprises of:
OASDI (Old Age Survivors and Disability Insurance -- Social Security) which is 6.20% or 12.40% depending if employed, or self employed
Medicare - primarily Part A -- 1.45% or 2.90%

OASDI is capped at $127,200 of your taxable income in 2017
Medicare has no cap on taxable income

Meaning on $20 million/year, self-employed, you'd pay $15,772.80 maximum in taxes for OASDI and $535,630 for Medicare for a total taxable contribution of $551,402 or less than 3% (2.75%) of your income to fund Medicare and SS, which are for yourself in the future. Medicare has a step-up of 0.9% for higher income individuals.

Then they can tax deduct half of FICA.

The real issue would be their income taxes at the end of the year, not FICA.

[TexasTowelie]

3. I think most of us here know that

just like most of us here know that Shaq is not a genius.

[metroins]

4. good point

I didn't want to insult Shaq, but I did want to put out the correct information in case somebody was reading it.

We all probably knew not to go to Shaq for tax advice though.

[get the red out]

2. They can afford some taxation, LOL

I always hope these young, talented players have plans in place for their money to be handled properly when they leave for the NBA.

I've always liked Shaq, well except for when he was at LSU playing Kentucky, I liked him a lot more after that!