As a sole-proprietor, am I liable to pay unemployment insurance taxes on myself and my family members who work for me?

As a sole-proprietor, the draws (remuneration) you receive from your business are not subject to UI contributions. Wages paid to your spouse, parents, or children under the age of 21 years old are also excluded and not subject to contributions. The same exclusions apply to a single member LLC electing treatment as a disregarded entity.