Babaysitter tax question

Question

my mom want to be a babysitter at someone's house, and the one who is hiring say he is going to report all the wage when it's time for income tax return, and he says we have to do the same thing.

So my question is does my mom needs to pay tax on the money she receives, if so what's the percentage (my family has 3, parents and son 24years old)

If she required to pay taxes, does she earn credit toward her retirement?

another question is if my mom gets laid off , does she entitled to file unemployment benefit?

Answer 1

The employer should withhold SS and Medicare in any case.  The amount of income tax withholding is dependent on how your mom files her W-4 form with the employer.  

Answer 2

1. Required to pay taxes: Yes, your mom will have to pay tax on this income just like any other income.  The employer will withhold Soc Sec and Medicare tax and state and federal income tax based on the W-4 she gives them, so the percentage is not something we can determine for you.

2.  Credit toward retirement: yes, that is the Soc Sec and Medicare that they will be withholding

3.  Unemployment: yes, if she qualifies by your state's rules