I was also granted the live in care exemption so the payments are not considered income and I do not pay taxes on the payments. Not paying taxes on difficulty of care payments is something completely different than your employer or fiscal agent not contributing to Social Security and Medicare which are FICA and FUTA taxes (which also includes unemployment taxes etc.)
"Notice 2014-7, issued on January 3, 2014, provided guidance that deemed the difficulty of care payments as not subject to federal income tax. However, the notice was silent regarding implications related to employment taxes, specifically FICA and FUTA. Additional guidance issued in the fall of 2022 concludes that difficulty of care payments are subject to FICA and FUTA taxes unless an exemption applies."
