Hi, I read through all the responses and I am still a little bit confused. It seems like there is a grandparents exception applied to pay your parents for babysitting. I am thinking to hire my uncle to babysit my son for a month in my house and I will pay him using DCFSA fund. From what I read, it seems like he is qualified as household employee, does that mean I have to issue him a W2 and pay social security tax and other withholding tax for him since his is not my parent? Thanks!
