household family employee and unemployment

[ae5880]

I employ my mother as a babysitter and every year I give her a W-2 but I haven't been withholding or paying any taxes. That's her only source of income and she makes around $5,000/year from that. Recently I had to cut her hours since I'm now working from home due to the coronavirus situation. She's thinking about applying for unemployment and I'm wondering a) if she's eligible? and b) if that'd get me into any trouble? From the research I've done I don't think I owe any taxes, but I'm not sure if the Michigan Unemployment Insurance Agency would see it that way.

[DawnC]

She should be able to file Michigan Unemployment.  As long as you have been giving her a W-2 and she has filed that W-2 on her tax returns, there should be no issues.  

You should also be filing Schedule H unless you have a payroll company file employment taxes on your behalf.  But that has no effect on your mother.