Who the f**k is FICA?"- Shaquille O'Neal was once left fuming after he learned that he was writing a $250,000 check for taxes
Before Shaquille O'Neal became a savvy businessman, the Hall of Famer struggled to even understand how he was supposed to pay taxes. Fortunately for Shaq, he had someone to teach him the ropes of handling his finances.
In a GQ interview a few years ago, O’Neal had this to say when he was forced to issue a check to cover his taxes:
"So, you know, I'm from the hood. Like, you know how you hear all these stories about how people steal money from you? The first name is FICA [Federal Insurance Contribution Act] for 250k, and I go off: 'Yo man, who the f**k is FICA? I didn't write no check for 250 for FICA.'
"He [Johnson] said, 'Shaq, I want you to read this book.' He said, 'I know you left school early, but you're about to come into a lot of money. This can help you.' It's the Dummies' Guide to Starting Your Own Business."
Shaquille O’Neal after his getting his first million-dollar paycheck: What ‘the hell is FICA’? dlvr.it/RkWbzP https://t.co/tkU6IuHDeP
The Federal Insurance Contributions Act was enacted into law in the U.S. in 1935. All employees will be deducted payroll tax, which employers will also have to match. The funds collected are used for Social Security and Medicare plans.
Shaquille O'Neal might not have known about the law, but he was forced to abide by the rule like any tax-paying citizen in his country.
Johnson introduced Shaq to the said book and the former LA Lakers center managed to utilize it to slowly teach himself to be a sound businessman.
O’Neal continued:
"The first thing I did was start a Subchapter S corporation because now my family is on salary—I can get that money back. All these cell phones I'm buying? The dope man's phones? We can get all that back during tax time. I was like, 'Damn.'
"The second thing I did was I created an emblem. Jordan has Jumpman, 'cause that's how he dunks. So when I dunk I used to keep my legs up like Dunk Man. Let me trademark it! That was the second thing I did.
"Then chapter three of the book talks about joint venture-ships. ... So the way I do business is all about joint venture-ships and trusts. For example, let's just say I wanna start a magazine that competes with GQ. I'm looking for the top African-American writers. I'm not writing sh*t."
Here's the full GQ interview
Shaquille O'Neal has a little bit of everything with his business ventures
According to a 2022 report, 16% of former NBA players have gone broke within a dozen years after hanging up their jerseys. Shaquille O'Neal retired following the 2010-11 season and has seen his business empire just continue to grow.
O’Neal invested in Google and Apple and owns the popular Big Chicken. Shaq is also into 24-hour gyms, car washes, a shopping center and a movie theater, among other things.
Shaquille O’Neal’s Big Chicken Sets Opening Date in Houston houston.eater.com/2023/2/10/2359… https://t.co/U5RzNw8oeV
Shaquille O'Neal has indeed come a long way from his familiarization with the book Johnson gave him to be one of the biggest business names in the U.S.
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