Because this is family, I see no reason to make a tax nightmare out of it. He gets room and board, and he provides child care. Extended families have been doing this since before humans climbed down from the trees and walked upright.
Is it your agreement that you will pay him in cash in addition to room and board? Does he pay rent? Is there some other reason that you want to pay him, does he need to show income or do you need the deduction for some reason?
