Can I pay my dad to baby sit my child even if he lives with me?

Hello, 

 

I have a couple of questions.

 

My dad will move in with me and he will help with watching my kid while I am at work. Can I pay him for those services ? I currently pay the school (for afterschool) $300 so I was going to pay him the same a week. I understand he will have to file taxes and pay taxes on that money as his income. Is that correct? Secondly do I have to issue a W2 or a 1099? Do I or him need to report the income quarterly to IRS? Do I have to apply for a Tax ID or can we use our social security number?  Can he apply for health insurance via the market place at that point? Anything I am missing? Does he need to issue an invoice to me or do we just keep track of regular payments?